SALOMON INC A NEW YORK SECURITIES FIRM ANNOUNCED AN INITIAL QUARTERLY DIVIDEND OF 73 CENTS A SHARE FOR ITS NEWLY LAUNCHED TRUST FUND SALOMON BROTHERS 2008 WORLDWIDE GOVERNMENT TERM TRUST INC PAYABLE OCT 29 TO SHARES OF RECORD OCT 25 9310180108 931018 DIVIDEND NEWS UNITED MOBILE HOMES INC UNITED MOBILE HOMES INC EATONTOWN NJ AN OWNER AND OPERATER OF MOBILE HOME PARKS SAID IT RAISED ITS QUARTERLY DIVIDEND 33 TO 10 CENTS A SHARE FROM 75 CENTS PAYABLE DEC 15 TO SHARES OF RECORD NOV 15 9310180107 931018 WHO'S NEWS SOUTHERN NATIONAL CORP SOUTHERN NATIONAL CORP WINSTONSALEM NC C ROYCE HOUGH FORMER EXECUTIVE VICE PRESIDENT AT FIRST UNION NATIONAL BANK OF VIRGINIA WAS NAMED EXECUTIVE VICE PRESIDENT OF CORPORATE BANKING OF THIS BANK A NEW POSITION MR HOUGH 55 YEARS OLD WILL JOIN THE BANK'S SENIOR MANAGEMENT TEAM 9310180106 931018 INTERNATIONAL BONN DENIES BLOCKING EFFORT TO PRESSURE IRAN BY TERENCE ROTH STAFF REPORTER OF THE WALL STREET JOURNAL FRANKFURT GERMANY DENIED US AND UK ALLEGATIONS THAT BONN IS PROVIDING IRAN WITH POLITICAL AND ECONOMIC SUPPORT WHICH THE US CLAIMS THWARTS WESTERN EFFORTS TO PRESSURE TEHRAN'S FUNDAMENTALIST REGIME BONN GOVERNMENT SPOKESMAN DIETER VOGEL SAID THAT ITS CONTACTS WITH TEHRAN ARE OF A HUMANITARIAN NATURE SEPARATELY SIEMENS AG THE BIG GERMAN ELECTRICAL CONCERN REJECTED SUGGESTIONS THAT IT WAS IN TALKS WITH TEHRAN TO HELP BUILD AN IRANIAN NUCLEAR REACTOR MR VOGEL SAID THERE ARE NO POLITICAL TALKS WITH OFFICIAL IRANIAN INSTITUTIONS ONLY TALKS ABOUT INDIVIDUAL HUMANITARIAN CASES HE SAID HE COULDN'T ELABORATE ON WHAT THOSE CASES WERE THE WALL STREET JOURNAL LAST WEEK REPORTED THAT US OFFICIALS WERE ANGERED BY A RECENT MEETING BETWEEN GERMAN AND IRANIAN INTELLIGENCE OFFICIALS THE US ALSO SUSPECTS THAT BONN IS NEGOTIATING WITH TEHRAN TO RESCHEDULE 5 BILLION IN SHORTTERM IRANIAN DEBT WHICH WOULD PROVIDE IRAN WITH SUBSTANTIAL FINANCIAL RELIEF AND THAT GERMANY HOPES TO ESTABLISH A SPECIAL RELATIONSHIP WITH IRAN STATE DEPARTMENT SPOKESMAN MIKE MCCURRY SAID THAT THE US IS CONCERNED THAT A GERMAN DIALOGUE WITH IRAN COMBINED WITH EXTENSIVE TRADING TIES AND FAVORABLE FINANCIAL TREATMENT MAY ENCOURAGE IRAN TO THINK THAT IT CAN IMPROVE RELATIONS WITH THE WEST WITHOUT CHANGING ITS BEHAVIOR THE UK COMPLAINED THAT GERMANY IS VIOLATING A DECEMBER 1992 EUROPEAN COMMUNITY AGREEMENT AGAINST IMPROVING RELATIONS WITH IRAN AS LONG AS IT DOESN'T RETRACT ITS DEATH SENTENCE FOR BRITISH AUTHOR SALMAN RUSHDIE BONN'S MR VOGEL WHO PROVIDED NO DETAILS OF THE MEETINGS SAID GERMANY WAS NOT AT ODDS WITH EC AGREEMENTS CLAIMING THAT THE POSITION OF THE FEDERAL GOVERNMENT ON UPHOLDING HUMAN RIGHTS IS KNOWN TO THE IRANIAN GOVERNMENT WE HAVE ALWAYS EMPHASIZED THIS TO TEHRAN US OFFICIALS REPORTEDLY BELIEVE BONN HAS BEEN ENCOURAGING EFFORTS BY GERMAN INDUSTRY TO DEAL WITH IRAN TO BOOST GERMAN EXPORTS SIEMENS WAS BELIEVED TO BE IN TALKS WITH IRAN TO COMPLETE CONSTRUCTION OF IRAN'S BUSHEIR NUCLEAR REACTOR PROJECT THESE CONTACTS ARE SUSPECTED TO HAVE INCLUDED A MEETING IN GERMANY BETWEEN SIEMENS OFFICIALS AND IRAN'S SECRET SERVICE CHIEF THE ALLEGATION THAT SIEMENS HAS MET WITH THE HEAD OF THE IRANIAN SECRET SERVICE ORGANIZATION IS PURELY FICTITIOUS SIEMENS SPOKESMAN WOLFGANG BREYER SAID IN A STATEMENT NOR IS SIEMENS INVOLVED IN ANY ACTIVITIES WHATSOEVER WHICH WOULD ENABLE THIRD PARTIES TO COMPLETE THE BUSHEIR PLANT 9310180104 931018 WHO'S NEWS CENTER BANKS INC CENTER BANKS INC SKANEATELES NY THIS BANKING CONCERN ELECTED DAVID E BLACKWELL 55 YEARS OLD ANN G HIGBEE 51 AND BRUCE H LESLIE 46 DIRECTORS INCREASING THE SIZE OF THE BOARD TO 10 MEMBERS 9310180103 931018 ENTERPRISE CANINE MASQUERADES SCARE UP SALES FOR ENTREPRENEURS COSTUME MAKERS UNLEASH PET OWNERS' DESIRES TO DOLL UP DOGS AT HALLOWEEN BY BARBARA MARSH STAFF REPORTER OF THE WALL STREET JOURNAL JUDIE OLSON IS PUTTING ON THE DOG THIS HALLOWEEN ALL RIGHT HER BELOVED BICHON FRISE LAPDOG WILL GREET TRICKORTREATERS IN A WITCH'S HAT AND CAPE THE KIDS LOVE IT SAYS THE OMAHA NEB RESIDENT FELLOW DOG OWNER JAN SCHMIDT IN COUNCIL BLUFFS IOWA WILL DO ONE BETTER HER SIXFOOTTWOINCHLONG GREAT DANE DISGUISED AS THE GREAT PUMPKIN WILL LEAD A CANINE MISSION OF MERCY TO LOCAL NURSING HOMES AND A CANCER WARD THE MASQUERADE WILL INCLUDE A GOLDEN RETRIEVER DRESSED AS A RABBIT A YELLOW LABRADOR A BAT AND AN ITALIAN GREYHOUND A CLOWN PEOPLE WILL SMILE SOME WILL BE IN TEARS SAYS MS SCHMIDT FOR DOGS AND THEIR OWNERS HALLOWEEN IS BECOMING BIG STUFF A TINY TIARA OR COWBOY BANDANA WILL NO LONGER DO FOR THE FASHIONABLE FIDO DOGS INCREASINGLY APPEAR AT THE DOOR IN COSTUME CONTESTS AND ON THE CHARITY CIRCUIT IN FULLBODIED REGALIA DRESSED AS ANYTHING FROM A SKELETON TO UNCLE SAM PET OWNERS' IMPULSE TO DOLL UP THEIR DOGS HAS CREATED A BUSINESS OPPORTUNITY FOR ENTREPRENEURS LATCHING ONTO A FAD HAS ALWAYS BEEN A QUICK WAY TO MAKE A BUCK OF COURSE AND THIS FASHION FIXATION IS NO EXCEPTION A PACK OF SMALL COSTUMEMAKING FIRMS DESIGNERS AND RETAILERS IS RUSHING TO CASH IN ON THE TREND FEW IF ANY FIRMS WERE MAKING PET COSTUMES FIVE YEARS AHE MARKET SINCE HAS BECOME VERY DYNAMIC SAYS KAREN LONG MACLEOD EDITOR OF PET AGE MAGAZINE A TRADE PUBLICATION THERE'S A CONSTANT INFLUX OF NEW COMPANIES NEW IDEAS NEW PRODUCTS SHE ADDS CANINES ARE EVEN MODELING HALLOWEEN DUDS THIS YEAR IN MAJOR RETAILERS' CATALOGS THIS FALL PETCETERA ORIGINALS INC IS PUSHING SUCH COSTUMES AS TOP DOG A TUXEDO AND TOP HAT AND CLOWN DOG WHICH INCLUDES A POLKADOTTED HAT PLEATED COLLAR AND FOREPAW POMPOMS BOTH OUTFITS FASTEN WITH VELCRO STRAPS COST 1998 EACH AND COME IN THREE SIZES AMONG OTHER GETUPS PETCETERA OFFERS ARE A BLACKANDWHITE DOGGIE BONES SKELETON SUIT AND A WHITE TULLE FAIRY TAIL OUTFIT PETCETERA A TWOYEAROLD FIRM IN WOODLAND HILLS CALIF PREDICTS THAT SALES OF THE COSTUMES WILL RISE AS MUCH AS 50 TO THE 275000 TO 300000 RANGE THIS YEAR SPIEGEL INC A DOWNERS GROVE ILL RETAILER THAT IS OFFERING THE DUDS IN ITS CATALOG IS SELLING HUNDREDS OF THE COSTUMES A WEEK 50 TO 60 ABOVE EXPECTATIONS SAYS RON PANEK SENIOR BUYER THE MARKET SEEMS SO EASY TO ENTER HOWEVER THAT DESIGNERS CAN BARELY OUTRUN THE COPYCATS NEW YORK DESIGNER ILENE HOCHBERG KNOWN FOR HER DOGWEAR VERSIONS OF TOP DESIGNERS OSCAR DE LA RAWHIDE FOR ONE IS CREATING A LINE OF DOG AND CAT COSTUMES FOR SIMPLICITY PATTERN CO FOR HALLOWEEN NEXT YEAR SHE REFUSES TO DESCRIBE WHAT SHE HAS IN MIND BECAUSE SHE FEARS BEING KNOCKED OFF BEFORE THEY COME OUT BUT CAN ANY DOG ENTERING A COSTUME CONTEST REALLY HOPE TO WIN IN A MASSPRODUCED COSTUME PT MORAN CO A WASHINGTON DC PET RETAILER HOLDS ANNUAL HALLOWEEN COSTUME CONTESTS AND STARTED OFFERING MANUFACTURED DOG COSTUMES AND HATS THIS YEAR FOR OWNERS WHO HAVEN'T TIME TO MAKE THEM MARYCLARE MOLONY THE COMPANY'S PRESIDENT SURMISES THAT IT'S POSSIBLE THAT A PET IN A MANUFACTURED OUTFIT COULD WIN BUT IN CASE FOUR PETS SHOW UP IN THE SAME STOREBOUGHT CLOWN COSTUME SHE ADVISES THE OWNER ADD SOMETHING DIFFERENT SUCH AS A RUBBER NOSE BALLOONS OR BIG FLOPPY SHOES COSTUME FIRMS FIND THAT ELABORATE DESIGNS SELL BEST LAST YEAR ACCORD INC A GIFT MANUFACTURER IN SANFORD FLA MADE ITS HALLOWEEN DEBUT WITH ITEMS RANGING FROM SIMPLE RED DEVIL DOG HORNS TO THE TWOPIECE HATANDCOLLAR NUMBERS FOR THE COURT JESTER AND CLOWN HOUND THE TWOPIECE OUTFITS FAR OUTSOLD THE SIMPLER ITEMS SO ACCORD THIS YEAR GOT EVEN MORE ADVENTURESOME ITS NEW 1993 SUITS FESTOON THE ENTIRE FRONT OF THE DOG FROM HEAD TO FOREPAW AND FEATURE LEGGINGS AND FAKE ARMS THAT DANGLE FROM THE SHOULDER THE STYLES INCLUDE RAMBARK MILITARY FATIGUES A PINK TUTU BALLERINA AND A WHITE SATIN HOUND DOG WITH GUITAR BEFORE THE SEASON STARTED CECILIA STERNBERG ACCORD'S OWNER WORRIED THAT CUSTOMERS WOULD SHY AWAY FROM THE 1995 PRICETAG ON THE NEW OUTFITS AFTER PAYING 695 TO 995 FOR LAST YEAR'S STUFF BUT SHE SAYS THAT EARLY SALES HAVE BEEN TERRIFIC AND PREDICTS THAT ACCORD'S HALLOWEEN SALES ALONE WILL NEARLY DOUBLE TO 2 MILLION THIS YEAR FROM LAST YEAR 9310180102 931018 WHO'S NEWS OMNICOM GROUP INC OMNICOM GROUP INC NEW YORK GAVIN ANDERSON & CO A FINANCIAL AND CORPORATE PUBLIC AFFAIRS CONCERN NAMED CHRISTOPHER KOMISARJEVSKY PRESIDENT AND CHIEF EXECUTIVE OFFICER OF ITS US SUBSIDIARY MR KOMISARJEVSKY 48 YEARS OLD IS AN EXECUTIVE VICE PRESIDENT AT HILL & KNOWLTON INC A PUBLIC RELATIONS UNIT OF LONDONBASED WPP GROUP PLC GAVIN ANDERSON IS A UNIT OF OMNICOM GROUP 9310180101 931018 WHO'S NEWS WENDY'S INTERNATIONAL INC WENDY'S INTERNATIONAL INC DUBLIN OHIO JOHN WRIGHT 46 YEARS OLD WAS NAMED PRESIDENT OF THE INTERNATIONAL DIVISION OF THIS OPERATOR AND FRANCHISER OF QUICKSERVE RESTAURANTS UNDER THE NAME WENDY'S OLD FASHIONED HAMBURGERS HE SUCCEEDS JOHN ROME 38 WHO WILL BECOME A WENDY'S FRANCHISEE IN NOVEMBER MR WRIGHT WAS MOST RECENTLY VICE PRESIDENT SOUTHERN REGION OF PIZZA HUT INC A UNIT OF PEPSICO INC 9310180100 931018 MARKETING & MEDIA ADVERTISING INCREASE IN AD SPENDING LIGHTENS MADISON AVENUE'S MANY BURDENS BY KEVIN GOLDMAN NAPLES FLA THERE'S LITTLE COMFORT IN THE ADVERTISING WORLD THESE DAYS ADVERTISERS AREN'T LOYAL TO THEIR AGENCIES CONSUMERS AREN'T LOYAL TO BIG BRANDS AND THE SPECTER OF INTERACTIVE ADVERTISING IS MAKING AN ANXIOUS MADISON AVENUE EVEN MORE NERVOUS APPROPRIATELY THE THEME OF THIS YEAR'S 84TH ANNUAL ASSOCIATION OF NATIONAL ADVERTISERS CONVENTION WHICH BEGAN AT THE RITZCARLTON HERE YESTERDAY IS NONONSENSE ADVERTISING MEANS BUSINESS THE PANEL DISCUSSIONS ARE DECIDEDLY NOFRILL TOMORROW FOR EXAMPLE CHARLOTTE BEERS CHAIRMAN OF WPP GROUP'S OGILVY & MATHER IS SCHEDULED TO DELIVER AN ADDRESS FOCUSING ON BUILDING BRAND EQUITY A NOT UNCOMMON TOPIC OF DISCUSSION AMONG AD AGENCIES THESE DAYS BUT ONE SIGNIFICANT BREAK IN THE CLOUDS IS IN FACT HOVERING OVER MADISON AVENUE AD SPENDING CONTINUES ITS SLOW STEADY CLIMB ALTHOUGH IT DOESN'T RESEMBLE IN ANY WAY THE DOUBLEDIGIT INCREASES OF THE 1980S ANALYSTS AND AD AGENCY EXECUTIVES SAY SPENDING AMONG ADVERTISERS WILL INCREASE AS MUCH AS 7 IN 1994 TO AN ESTIMATED 902 BILLION THAT FOLLOWS AN EXPECTED 4 INCREASE THIS YEAR TO AN ESTIMATED 84 BILLION ACCORDING TO ARTHUR GRUEN HEAD OF WILKOFSKY GRUEN ASSOCIATES A NEW YORK ECONOMIC CONSULTANT SPECIALIZING IN MEDIA AND ENTERTAINMENT SOME PREDICTIONS ARE MORE CONSERVATIVE ROBERT COEN THE PERENNIALLY OPTIMISTIC FORECASTER AT INTERPUBLIC GROUP'S MCCANNERICKSON RECENTLY REDUCED HIS PREDICTION OF A 1993 AD SPENDING INCREASE OF 66 MADE AT THE BEGINNING OF THE YEAR TO 58 AND SAATCHI & SAATCHI'S ZENITH MEDIA UNIT IS ANSWERING THE OFTEN ASKED QUESTION ON MADISON AVENUE IS THE WORST BEHIND US WITH A QUALIFIED YES AND FORECASTING AN INCREASE IN AD SPENDING THIS YEAR OF 36 IT WILL NOT BE THE HOPED FOR TURNAROUND YEAR ZENITH CAUTIONS IT'S AN INCREASE BUT A SUBDUED INCREASE SO DON'T BLOW UP THE BALLOONS AND BLOW THE NOISEMAKERS QUITE YET SAYS ALAN GOTTESMAN AN ANALYST WITH PAINEWEBBER ANY SPENDING INCREASE HOWEVER IS WELCOME NEWS TO AD AGENCIES IN TODAY'S UNCERTAIN ENVIRONMENT IN FACT IN 1991 AD SPENDING ACTUALLY DECREASED 4 FROM 1990 TO 775 BILLION THE FIRST DROP IN THREE DECADES ONE REASON FOR THE UPTICK THIS YEAR IS A STRONG SCATTER MARKET MEANING WHEN ADVERTISING IS PURCHASED AT THE LAST MOMENT AS OPPOSED TO WHEN IT IS ORDERED IN ADVANCE OF A PROGRAM'S AIRING IN THE SOCALLED UPFRONT MARKET THE SCATTER MARKET IS COMMANDING HIGHER PRICES ON AVERAGE 8 ABOVE THE UPFRONT MARKET SAY BROADCAST NETWORK EXECUTIVES IN THE FOURTH QUARTER THESE EXECUTIVES SAY THE FOUR MAJOR BROADCAST NETWORKS WILL COLLECT A TOTAL OF 350 MILLION IN THE SCATTER MARKET IT'S HEALTHY SCATTER WITH PACKAGED GOODS AND AUTOMOBILES SPENDING SAYS LARRY HOFFNER SENIOR VICE PRESIDENT OF SALES AT GENERAL ELECTRIC'S NBC NETWORK SCATTER USED TO BE THE POOR RELATION OF NETWORK ADVERTISING BUT SAYS MR GOTTESMAN ADVERTISERS HAVE COME TO REALIZE THEY DON'T HAVE TO SPEND THEIR ENTIRE BUDGETS FAR IN ADVANCE SEVERAL FACTORS ARE CONTRIBUTING TO THE INCREASES SAY ANALYSTS INCLUDING AN END TO THE UNCERTAINTY OVER PRESIDENT CLINTON'S BUDGET PROPOSALS BETSY FRANK A SENIOR VICE PRESIDENT AT SAATCHI & SAATCHI SAYS AD SPENDING IS UP FOR SUCH CATEGORIES AS CREDIT CARDS TELECOMMUNICATIONS MOVIES RETAIL STORES PACKAGED GOODS INSURANCE COMPANIES AND AUTOMOTIVE MANUFACTURERS YET SHE ADDS AD SPENDING AMONG THE HOTLY COMPETITIVE CATEGORY OF FAST FOOD IS FLAT FROM A YEAR AGO THE ECONOMY IS INCHING IN THE RIGHT DIRECTION BUT IT DOESN'T SEEM TO BE PICKING UP A GREAT DEAL OF STEAM SAYS MS FRANK IT'S BECOMING INCREASINGLY HARD TO BE OPTIMISTIC IN THIS BUSINESS ROY NW AYER NEW YORK AND ROSS ROY COMMUNICATIONS BLOOMFIELD HILLS MICH ARE MERGING THEIR DIRECTMARKETING UNITS TO FORM A JOINT DIRECTMARKETING VENTURE DUBBED WORLDWIDE 1 TO 1 THE NEW VENTURE OPENS ITS DOORS WITH BILLINGS OF ABOUT 75 MILLION FROM AYER CLIENTS AMERICAN TELEPHONE & TELEGRAPH AND CITICORP AS WELL AS KMART AND STROH BREWERY WHICH ARE CLIENTS OF ROSS ROY IT WILL OFFER DIRECTMARKETING SERVICES TO THE AGENCIES' EXISTING CLIENTS AN AYER SPOKESMAN SAID EXCEPT FOR CHRYSLER CORP ONE OF ROSS ROY'S CLIENTS LEN SHORT FORMERLY EXECUTIVE VICE PRESIDENT OF ROSS ROY DIRECT WAS NAMED PRESIDENT OF THE NEW VENTURE BEVERLY BEAUDOIN PRESIDENT OF AYER'S WORLDWIDE DIRECT WAS NAMED EXECUTIVE VICE PRESIDENT AND GENERAL MANAGER AMERICAN HONDA MOTOR CO CONSOLIDATED A PROJECTED 130 MILLION IN ADVERTISING FOR ITS US DEALERS WITH RUBIN POSTAER & ASSOCIATES OF SANTA MONICA CALIF THE ACCOUNT WAS PREVIOUSLY DIVIDED AMONG 50 MOSTLY REGIONAL AGENCIES HONDA SAID HONDA SAID THE CONSOLIDATION IS PART OF A REGIONALMARKETING PUSH AIMED AT MAKING LOCAL DEALER ADS MORE COMPATIBLE WITH HONDA'S NATIONAL ADVERTISING SAID RICHARD COLLIVER SENIOR VICE PRESIDENT FOR HONDA DIVISION SALES RUBIN POSTAER WHICH BILLED 211 MILLION IN 1992 ACCORDING TO ADVERTISING AGE CREATES HONDA'S NATIONAL ADS TOO LAST YEAR MR COLLIVER SAID HONDA DEALERS SPENT ABOUT 65 MILLION ON THEIR ADS GERRY RUBIN RUBIN POSTAER PRESIDENT SAID THE AGENCY PLANS TO OPEN SEVEN FULLSERVICE OFFICES SOLELY TO DEVELOP REGIONAL AD CAMPAIGNS FOR HONDA DEALERS MR RUBIN SAID THE AGENCY ALSO PLANS TO HIRE ABOUT 100 PEOPLE THE SERVICE OFFICES ARE SET TO OPEN IN OR AROUND NEW YORK DALLAS PORTLAND ORE LOS ANGELES BOSTON CHICAGO AND ATLANTA ACCOUNT THE FIRST CONSUMER AD CAMPAIGN FOR DR MARTENS SHOES THE CLUNKY BLACK GRUNGEFASHION STAPLE IS SET TO APPEAR IN TRADE AND CONSUMER MAGAZINES NEXT MONTH THE NEW CAMPAIGN CREATED BY THE PORTLAND ORE OFFICE OF WPP GROUP'S COLE & WEBER IS MEANT TO BUILD AWARENESS OF THE DOC MARTENS BRAND RATHER THAN A FAD WE WANT THEM TO BE A LIFESTYLE SAYS BILL BERDAN PARTNER OF LONDON UNDERGROUND INTERNATIONAL OF PORTLAND WHICH DISTRIBUTES THE SHOES IN THE US BILLINGS ARE ABOUT 35 MILLION WHO'S NEWS YOUNG & RUBICAM NEW YORK NAMED JONATHAN MANDELL SENIOR VICE PRESIDENT AND CREATIVE DIRECTOR AT OMNICOM GROUP'S BBDO TO THE POST OF EXECUTIVE VICE PRESIDENT AND CREATIVE DIRECTOR REPORTING TO TED BELL VICE CHAIRMAN AND WORLDWIDE CREATIVE DIRECTOR MR MANDELL AND TWO OTHER EXECUTIVES MANNY PEREZ AND MARVIN WALDMAN ARE OVERSEEING CREATIVE WORK AT THE AGENCY'S FLAGSHIP OFFICE SUCCEEDING HELAYNE SPIVAK WHO LEFT EARLIER THIS MONTH 9310180099 931018 FOOD ROTISSERIES FIRE UP FASTFOOD BUSINESS BY RICHARD GIBSON STAFF REPORTER OF THE WALL STREET JOURNAL WHAT GOES AROUND HAS FINALLY COME AROUND OR SO THEY ARE SAYING IN THE FASTFOOD CHICKEN INDUSTRY THESE DAYS CHICKEN COOKED ON A SPIT A STAPLE OF DELICATESSENS CONVENIENCE STORES AND SOME SUPERMARKETS IS BECOMING THE HOT NEW FARE FOR US RESTAURANT ENTREPRENEURS CHAINS FEATURING MARINATED BIRDS ROASTING OVER AN OPEN FIRE OR ROTATING ON ELECTRIC GRILLS BEHIND GLASS ARE PROLIFERATING THE WAY PIZZA PARLORS ONCE DID EVEN FRIEDCHICKEN KING KFC CORP IS PROMOTING A ROTISSERIE PRODUCT WITH WHAT THE COMPANY SAYS IS ITS COSTLIEST ADVERTISING CAMPAIGN EVER INTRODUCTORY ADS FEATURE A SECRET COL SANDERS RECIPE FOR SKEWERED CHICKEN SUDDENLY TURNING UP JUST IN TIME TO CAPITALIZE ON CONSUMER DESIRES FOR A MORE HEALTHFUL DRUMSTICK OR AT LEAST ONE THAT TASTES DIFFERENT OUR GOAL IS ULTIMATELY TO BUILD AS BIG A NONFRIED BUSINESS AS WE HAVE A FRIED ONE TODAY A KFC SPOKESMAN SAYS THE COMPANY A PEPSICO INC UNIT PROJECTS 700 MILLION IN SALES THIS YEAR FROM THE PRODUCT IT CALLS ROTISSERIE GOLD THE CHAIN ALREADY IS SELLING ABOUT 2 MILLION OF THE PRODUCT EACH DAY OR 30 OF AVERAGE DAILY SALES A SPOKESMAN SAYS ADDING WE HAVEN'T SEEN SALES LIKE THIS IN 10 YEARS TRUE THERE ARE PROBLEMS WITH SLOWCOOKED FAST FOOD IN A DES MOINES IOWA KFC RECENTLY A NOONTIME CUSTOMER ANGRILY LEFT WHEN TOLD THE RESTAURANT WAS OUT OF DARK ROTISSERIE CHICKEN AND MORE WOULDN'T BE READY FOR ANOTHER 30 MINUTES SPOKESMEN FOR SEVERAL CHAINS ACKNOWLEDGE THAT ACCURATELY PREDICTING USAGE ISN'T EASY BUT NOTE THEY ARE DEVELOPING REUSE RECIPES THAT PUT ROTISSERIE LEFTOVERS IN SANDWICHES SOUPS AND POT PIES BUT PLENTY OF BUSINESS PEOPLE BELIEVE THE POTENTITAL OF ROTISSERIE CHICKEN OUTWEIGHS ANY PROBLEMS FOR EXAMPLE JOHN Y BROWN WHO FOUNDED KENTUCKY FRIED CHICKEN 30 YEARS AGO NOW TOUTS ROASTED CHICKEN AS THE FOWL OF THE FUTURE THE ONETIME KENTUCKY GOVERNOR HAS TEAMED UP WITH KENNY ROGERS THE COUNTRYANDWESTERN SINGER TO FORM ROASTERS CORP BASED IN FORT LAUDERDALE FLA THE COMPANY OPENED ITS 100TH KENNY ROGERS ROASTERS OUTLET EARLIER THIS MONTH THE LARGEST US CHAIN DEDICATED SOLELY TO ROTISSERIE POULTRY IS BOSTON CHICKEN INC WITH 166 STORES IN 16 STATES AND ABOUT TO TEST INVESTOR TASTES FOR ITS MENU WITH AN INITIAL PUBLIC OFFERING BOTH BOSTON CHICKEN AND ROASTERS INTEND TO ADD SEVERAL HUNDRED OUTLETS EACH IN THE NEXT FEW YEARS JUMP FROM THE FRYING PAN INTO THE FIRE A ROASTERS VIDEOTAPE URGES WOULDBE FRANCHISEES ROTISSERIECHICKEN PROMOTERS SEEM AS EAGER TO ENTICE NEW INVESTORS AS PATRONS ALTHOUGH IT OPERATES ONLY A HANDFUL OF RESTAURANTS SO FAR CLUCKER'S WOOD ROASTED CHICKEN INC MIAMI ALREADY HAS SOLD LICENSING RIGHTS TO ITS VERSION OF ROTISSERIE CHICKEN FOR MEXICO AND CENTRAL AMERICA ROASTERS RECENTLY COMPLETED A JOINT VENTURE WITH A MALAYSIAN GROUP THIS ISN'T A PASSING FAD CONTENDS RONALD PAUL PRESIDENT OF TECHNOMIC INC A CHICAGO CONCERN THAT TRACKS THE COUNTRY'S EATINGOUT HABITS ROTISSERIE CHICKEN IS A BETTERTASTING PRODUCT THAN ANY OTHER PERCEIVED CHICKEN ALTERNATIVE HAS BEEN BUT HE ADDS THAT DOESN'T MEAN WE MIGHT NOT OPEN TOO MANY RESTAURANTS AN EVENTUAL SHAKEOUT DOES SEEM LIKELY STILL THE POTENTIAL APPEAL OF A LEANER CHICKEN WITH A NEW TASTE IS THE TALK OF THE RESTAURANT INDUSTRY AMERICANS ALREADY EAT MORE CHICKEN THAN BEEF BUT AS FAT AND CHOLESTEROL CONCERNS LINGER CHEFS ARE BEING PUSHED TO FIND NOVEL WAYS TO PREPARE POULTRY THE NATIONAL RESTAURANT ASSOCIATION ESTIMATES THAT WHILE TOTAL CHICKEN ORDERS IN RESTAURANTS ROSE 5 LAST YEAR THOSE FOR FRIED CHICKEN FELL 3 ROTISSERIE CHAINS MARINATE THEIR CHICKEN SPICED CITRUS JUICE IS CURRENTLY POPULAR THEN GRILL THEM FOR 90 MINUTES OR SO THE PROCESS ALLOWS FAT TO DRIP OUT LEAVES MEAT MOIST AND GIVES THE SKIN A THANKSGIVING TURKEY SHEEN KFC'S ROTISSERIE GOLD CONTAINS 42 FEWER CALORIES AND 42 LESS FAT THAN ITS EXTRA TASTY CRISPY A FRIED PRODUCT ROASTED PIECES ALSO HAVE 24 FEWER CALORIES AND 21 LESS FAT THAN THE COLONEL'S ORIGINAL RECIPE WHILE THE CHAINS SEEK TO DIFFERENTIATE THEMSELVES WITH THEIR AMBIENCE KENNY ROGERS'S STORES SHOW COUNTRYANDWESTERN MUSIC VIDEOS OR THE TYPE OF WOOD ON THE FIRE THEIR MENUS SEEM INTERCHANGEABLE HOMESTYLE OR MADEFROMSCRATCH SIDE DISHES ARE A FEATURE AT BOSTON CHICKEN KENNY ROGERS ROASTERS CLUCKERS AND KFC BUTTERED CORN ON THE COB DILLED NEW POTATOES CREAMED SPINACH AND CORNBREAD MUFFINS ALONG WITH A MACARONI OR RICE DISH AND SOME SORT OF APPLE DESSERT ARE TYPICAL FARE UNLIKE MANY FRIEDCHICKEN OUTLETS THE ROTISSERIE CONCERNS TYPICALLY DON'T SELL POULTRY BY THE PIECE WHOLE HALF OR QUARTER CHICKENS ARE THE NORM WITH A HALF GENERALLY GOING FOR BETWEEN 449 AND 599 AND A WHOLE BIRD FOR AROUND 749 COMPLETE MEALS A WHOLE CHICKEN PLUS TWO SIDE DISHES CAN COST UP TO 1299 BUT NOT EVERYONE IN THE CHICKEN BUSINESS IS SMITTEN WITH GRILLING WE HAVE ROASTED CHICKEN IN A LIMITEDSTORE TEST AT POPEYES BUT I DON'T THINK YOU'LL SEE A BIG PUSH SAYS DENNIS CAMPBELL VICE PRESIDENT OF PRODUCT RESEARCH AND DEVELOPMENT AT AMERICA'S FAVORITE CHICKEN CO WHICH OWNS THE CHURCH'S AND POPEYES FRIEDCHICKEN CHAINS WE'RE NOT CONVINCED THAT THE INVESTMENT IT WOULD TAKE IS JUSTIFIABLE LONGTERM HE SAYS INDEED LAST YEAR ONLY ABOUT 18 OF CHICKEN CONSUMED OUTSIDE HOMES WAS NONFRIED ACCORDING TO NPD CREST A CHICAGOAREA RESEARCH CONCERN BUT ENTREPRENEURS LIKE MR BROWN ARE UNDETERRED SEARCHING FOR AN ENCORE IN THE CHICKEN BUSINESS HE BEGAN FIDDLING WITH ROTISSERIE CHICKEN IN 1985 INSTALLING A FRENCH SPIT IN A LOUISVILLE KY STORE HE CALLED LE CHICKEN GRILL THE PLACE BROKE EVEN HE SAYS NEXT MR BROWN HOOKED UP WITH MR ROGERS AN OLD FRIEND FOR WHOM THE FORMER GOVERNOR HAS BIG PLANS PR REALLY LAUNCHED OUR COMPANY MR BROWN SAYS OF KENTUCKY FRIED CHICKEN NOTING THAT EVERY TIME COL SANDERS WENT ON TELEVISION SALES SOARED WE'RE ON OUR WAY TO BUILDING ANOTHER KFC MR BROWN SAYS NOTING PERSTORE ANNUAL SALES OF OVER 1 MILLION ABOUT HALF THAT BUSINESS WAS TAKEOUT HE SAYS BACK AT THE NATION'S DOMINANT CHICKEN CHAIN KFC FRANCHISEES SAY THE ADDITION OF NONFRIED CHICKEN ALREADY IS BRINGING IN CUSTOMERS WHO PREVIOUSLY SHUNNED THE STANDARD FRIED FARE JOHN R NEAL A KFC FRANCHISEE IN COLUMBIA TENN PUTS IT THIS WAY WHAT THE COLONEL DID BY TAKING THE WOMAN OUT OF THE KITCHEN WE HOPE THIS WILL TAKE THE MAN OFF THE BARBECUE GRILL 9310180098 931018 WHO'S NEWS STAR BANC CORP STAR BANC CORP CINCINNATI EXECUTIVE VICE PRESIDENT GARY N KOCHER A TOP RETAIL BANKING STRATEGIST AT THIS REGIONAL BANK HOLDING COMPANY SAID HE PLANS TO QUIT TO PURSUE ANOTHER BUSINESS INTEREST MR KOCHER 46 YEARS OLD REMAINED ON THE TOP MANAGEMENT TEAM AFTER JERRY GRUNDHOFER WAS NAMED PRESIDENT AND CHIEF EXECUTIVE OFFICER IN MAY SUCCEEDING OLIVER W WADDELL WHO REMAINS CHAIRMAN BUT SINCE THEN MR GRUNDHOFER HAS BEGUN ASSEMBLING HIS OWN TOP TEAM WITH NO CLEAR ROLE FOR MR KOCHER ANALYSTS SAY WITH THIS MANAGEMENT SUCCESSION NOW CLEARLY ESTABLISHED ALBEIT NOT TO THE EXTENT WHICH IS TOTALLY FULFILLING TO MY CAREER'S ASPIRATIONS I BELIEVE NOW IS THE APPROPRIATE TIME TO LEAVE MR KOCHER SAID IN A PREPARED STATEMENT A SPOKESMAN COULDN'T SAY WHEN MR KOCHER WILL LEAVE OR WHETHER HE WILL BE REPLACED 9310180097 931018 TECHNOLOGY US PLANS TO APPEAL RULING ALLOWING CABLE PHONE SERVICES BY BELL ATLANTIC BY DANIEL PEARL AND JOE DAVIDSON STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON THE JUSTICE DEPARTMENT SAID IT WILL APPEAL A RULING THAT ALLOWS BELL ATLANTIC CORP TO SELL ITS OWN CABLE SERVICE IN AREAS WHERE IT PROVIDES TELEPHONE SERVICE THE MOVE FOLLOWS BELL ATLANTIC'S AMBITIOUS PLANS ANNOUNCED LAST WEEK TO ACQUIRE TELECOMMUNICATIONS INC AND BUILD INFORMATION SUPERHIGHWAYS INSIDE AND OUTSIDE ITS OPERATING TERRITORY IN THEIR ANNOUNCEMENT LAST WEEK OFFICIALS OF BOTH COMPANIES SAID BELL ATLANTIC WAS AN ATTRACTIVE PARTNER PARTLY BECAUSE IT'S THE ONLY TELEPHONE COMPANY THAT HAS RECEIVED A GREEN LIGHT TO PROVIDE VIDEO PROGRAMMING IN ITS OWN REGION STILL A BELL ATLANTIC SPOKESMAN SAID YESTERDAY THAT THE APPEAL HAS LITTLE BEARING ON THE TCI DEAL HE ALSO SAID THE JUSTICE DEPARTMENT'S ACTION IS REALLY NOT SURPRISING AND THAT THE COMPANY EXPECTS TO WIN ON APPEAL A JUSTICE DEPARTMENT SPOKESMAN SAID THE APPEAL WAS UNRELATED TO LAST WEEK'S ANNOUNCEMENT OF THE ACQUISITION THE DEPARTMENT ROUTINELY APPEALS DECISIONS THAT STRIKE DOWN PARTS OF EXISTING LAWS BUT THIS SITUATION WAS LESS CLEAR BECAUSE THE DEPARTMENT'S ANTITRUST DIVISION HAD ARGUED FOR GETTING RID OF THE PROGRAMMING BAN ON TELEPHONE COMPANIES TELEPHONE COMPANIES CAN TRANSMIT PROGRAMMING OVER THEIR PHONE LINES AS LONG AS THEY SELL THE TRANSMISSION SERVICES TO OUTSIDERS INSTEAD OF USING THEIR OWN PROGRAMMING IN VIRGINIA BELL ATLANTIC HAD SOUGHT THE RIGHT FOR ITS C&P TELEPHONE UNIT TO PROVIDE PROGRAMMING FROM A BELL ATLANTIC UNIT A PRACTICE BARRED BY THE 1984 CABLE ACT AN AUGUST RULING BY FEDERAL DISTRICT JUDGE TS ELLIS III IN ALEXANDRIA VA STRUCK DOWN THAT PROVISION OF THE CABLE ACT ON FIRST AMENDMENT GROUNDS A JUSTICE DEPARTMENT ANTITRUST OFFICIAL SAID THE APPEAL WILL BE BASED ON CONSTITUTIONAL RATHER THAN ANTITRUST CONCERNS WHILE ANTITRUST ISSUES AREN'T A CRITICAL PART OF THE APPEAL HE SAID A SUCCESSFUL APPEAL COULD JEOPARDIZE THE DEAL A SENIOR JUSTICE DEPARTMENT OFFICIAL ACKNOWLEDGED THAT THE ANTITRUST DIVISION AND THE FEDERAL TRADE COMMISSION ARE CONCERNED ABOUT THE POTENTIAL ANTICOMPETITIVE IMPACT OF THE DISTRICT COURT'S DECISION BUT GOVERNMENT ANTITRUST OFFICIALS ARE A LONG WAY FROM DECIDING IF THE PROPOSED MERGER HURTS COMPETITION IN THE COMMUNICATION INDUSTRY THE APPELLATE PROCESS PROBABLY WILL BE COMPLETED BEFORE THE REGULATORY PROCESS DETERMINES IF THE PROPOSED BELL ATLANTIC/TCI TRANSACTION VIOLATES ANTITRUST LAW THE ALEXANDRIA DECISION DIDN'T ADDRESS WHETHER TELEPHONE COMPANIES COULD BUY OUT THEIR LOCAL CABLE COMPANIES THE FEDERAL COMMUNICATIONS COMMISSION HAS RULES PROHIBITING SUCH CROSSOWNERSHIP AND ANTITRUST RESTRICTIONS COULD ALSO PREVENT IT BELL ATLANTIC HAS SAID TCI WOULD SELL OR SPIN OFF TO SHAREHOLDERS ANY CABLE SYSTEMS WHOSE CUSTOMERS ARE ALSO BELL ATLANTIC CUSTOMERS INCLUDING THE SYSTEMS IN WASHINGTON AND BALTIMORE SEPARATELY THE SENATE IS CONSIDERING LEGISLATION THAT WOULD ALLOW TELEPHONE COMPANIES TO PROVIDE CABLE PROGRAMMING IN THEIR OWN SERVICE AREA BUT BAR THEM FROM BUYING CABLE SYSTEMS IN THEIR SERVICE AREA THE BILL SPONSORED BY SEN JACK DANFORTH R MO AND SEN DANIEL INOUYE D HAWAII WOULD ALSO REMOVE STATE REGULATIONS THAT BLOCK SOME CABLE COMPANIES FROM PROVIDING TELEPHONE SERVICE IF ANYTHING CONGRESSIONAL CONCERNS ABOUT THE BELL ATLANTICTCI DEAL COULD INCREASE THE LIKELIHOOD SUCH LEGISLATION GETS PASSED THAT'S BECAUSE OTHER TELEPHONE COMPANIES IN TCI'S SERVICE AREA WOULD NEED CONGRESSIONAL ACTION OR RULINGS SIMILAR TO JUDGE ELLIS'S IN ORDER TO PROVIDE CABLE SERVICE IN COMPETITION WITH THE NEW BELL ATLANTIC TELEPHONE COMPANIES HAVE ARGUED THEY NEED THE RIGHT TO HOLD A STAKE IN THE PROGRAMMING IN ORDER TO MAKE IT FINANCIALLY WORTHWHILE TO BUILD MULTIBILLION DOLLAR FIBEROPTIC NETWORKS THAT CAN SEND TELEPHONE VIDEO AND INFORMATION SIGNALS BUT SUPPORTERS OF THE 1984 PROVISION SAY TELEPHONE COMPANIES MAY RESTRICT THE USE OF THEIR LINES BY COMPETING CABLE SYSTEMS ONE QUESTION IS HOW STRONGLY LARGE CABLE COMPANIES WILL ARGUE AGAINST THE JUDGE'S DECISION THE CABLE INDUSTRY DECLARED ITS OPPOSITION TO THE DECISION IN AUGUST BUT CABLE FIRMS ALSO HAVE BEGUN PURSUING VENTURES WITH TELEPHONE COMPANIES SO FAR THE JUSTICE DEPARTMENT HAS FILED A NOTICE OF APPEAL A SPOKESMAN SAID THE DEPARTMENT WILL FILE THE ACTUAL APPEAL WHICH WILL INCLUDE A BRIEF OUTLINING THE ADMINISTRATION'S REASONING SOON IN THE US COURT OF APPEALS FOR THE FOURTH CIRCUIT 9310180096 931018 TECHNOLOGY COMPUTER FIRMS TO UNVEIL VERSION OF PC NETWORK MANAGEMENT TOOL BY DON CLARK STAFF REPORTER OF THE WALL STREET JOURNAL A GROUP OF COMPUTERINDUSTRY GIANTS TODAY WILL ANNOUNCE A STEP TOWARD SOLVING ONE OF THEIR CUSTOMERS' BIGGEST PROBLEMS HOW TO KEEP TRACK OF ALL THE PERSONAL COMPUTERS AND SOFTWARE THEY OWN THE DESKTOP MANAGEMENT TASK FORCE SPEARHEADED BY SEMICONDUCTOR GIANT INTEL CORP WILL DISTRIBUTE THE FIRST VERSION OF SOFTWARE THAT IS EXPECTED TO BECOME A STANDARD TOOL TO MANAGE NETWORKS OF PCS THAT ARE RAPIDLY REPLACING MAINFRAME SYSTEMS AT MAJOR CORPORATIONS THE SOFTWARE IS DESIGNED TO ACT LIKE AN ELECTRONIC FINGERPRINT THAT MANUFACTURERS WOULD BUILD INTO THEIR PCS PRINTERS CIRCUIT BOARDS OPERATING SYSTEMS AND APPLICATIONS SOFTWARE THE CODE CALLED THE DESKTOP MANAGEMENT INTERFACE WOULD LET THE PRODUCTS IDENTIFY THEMSELVES SO THEY CAN WORK TOGETHER WITHOUT SPECIAL INSTRUCTIONS BY A USER THE STANDARDSETTING EFFORT BEGUN IN 1992 IS EXPECTED TO TAKE SEVERAL YEARS EVENTUALLY BACKERS PREDICT A MANAGER SITTING AT A WORKSTATION WILL BE ABLE TO CHECK WHICH COMPUTERS ON A NETWORK ARE RUNNING WHICH ACCESSORIES THEY ARE USING AND WHAT SOFTWARE VERSIONS ARE STORED ON EACH HARD DISK BESIDES INTEL MEMBERS OF THE TASK FORCE INCLUDE INTERNATIONAL BUSINESS MACHINES CORP DIGITAL EQUIPMENT CORP HEWLETTPACKARD CO MICROSOFT CORP NOVELL INC SUN MICROSYSTEMS INC AND SYNOPTICS COMMUNICATIONS INC THE GROUP NOW CLAIMS ABOUT 300 MEMBER COMPANIES ONE INSPIRATION WAS THE HASSLE OF SETTING UP NETWORKS INTEL EXECUTIVES SAY FOR EXAMPLE MOST IBMCOMPATIBLE PCS REQUIRE NETWORK USERS TO INSTALL SPECIAL CIRCUIT BOARDS SET KEY SWITCHES AND ENTER COMPLEX SOFTWARE COMMANDS OVER TIME AS DEPARTMENTS BUY NEW PROGRAMS AND ADD ACCESSORIES CORPORATIONS REALIZE THEY'VE LOST TRACK OF WHAT THEY HAVE WHAT IT'S BEING USED FOR AND HOW MUCH THEY'VE SPENT NOBODY HAS A CLUE WHERE ALL THAT STUFF IS SAID ANDY GROVE INTEL'S CHIEF EXECUTIVE AT INTEL THERE ARE LITERALLY TENS OF MILLIONS OF DOLLARS THAT OOZE THROUGH THE ORGANIZATION THE ISSUE IS PARTICULARLY ACUTE FOR MAKERS OF NETWORKING DEVICES AND OTHERS WHO ARE PROMOTING PC NETWORKS AS A LOWCOST ALTERNATIVE TO CENTRAL MAINFRAMES OUR CUSTOMERS ARE GOING NUTS SAYING HOW CAN I MANAGE THIS' SAID KAREN O'NEIL MANAGER OF SYNOPTICS'S INTEGRATED MANAGEMENT PROGRAM CHEVRON INFORMATION TECHNOLOGY THE OIL COMPANY'S DATA SERVICES ARM HAS FOUND IT ALMOST IMPOSSIBLE TO COUNT THE PROGRAMS PURCHASED BY INDIVIDUAL DEPARTMENTS SAID JIM LISIAK ONE OF ITS SOFTWARE ENGINEERS ITS ONLY SOLUTION WAS TO ASK SOFTWARE COMPANIES AND RETAILERS TO CHECK THEIR DATABASES FOR ALL SALES TO THE COMPANY HE SAID AT A MEETING IN SAN FRANCISCO TODAY THE TASK FORCE WILL DISTRIBUTE INITIAL VERSIONS OF THE DESKTOP MANAGEMENT INTERFACE SOFTWARE TO INTERESTED COMPANIES MR GROVE SAID THE STANDARD WITH ITS INDUSTRY SUPPORT HOLDS A GOOD CHANCE OF EVENTUALLY SPREADING TO ALL COMPUTER SYSTEMS SOFTWARE AND ACCESSORIES MICROSOFT FOR EXAMPLE HAS SAID IT WILL INCLUDE THE CODE WITH FUTURE VERSIONS OF ITS OPERATING SYSTEMS 9310180095 931018 WORLD STOCK MARKETS US INVESTORS LEAD RALLY IN ASIAN STOCKS BY ROBERT STEINER STAFF REPORTER OF THE WALL STREET JOURNAL HONG KONG WHO'S RIGHT THE GRITTY SPECULATORS OF THE WORLD'S FASTESTGROWING ECONOMIES OR WALL STREET'S GURUS A WAVE OF MASSIVE STOCKMARKET RALLIES ACROSS ASIA LAST WEEK RAISES THAT QUESTION IN A STRANGE TWIST MANY SOPHISTICATED US INVESTORS ARE FLEEING UNINSPIRING SECURITIES AT HOME FOR ASIAN STOCKS WHILE ASIANS THEMSELVES STAND ON THE SIDELINES MOST EYES WERE GLUED TO HONG KONG LAST WEEK WHERE THE HANG SENG INDEX OF BLUE CHIPS SURGED 94 TO FINISH FRIDAY AT 876398 ITS FIFTH RECORD CLOSE IN A ROW SMALLER MARKETS IN NEIGHBORING COUNTRIES SOARED TOO THE MANILA COMPOSITE INDEX OF PHILIPPINES BLUE CHIPS GAINED 97 DURING THE WEEK THE STOCK EXCHANGE OF THAILAND INDEX GAINED 51 AND THE SINGAPORE STRAITS TIMES INDUSTRIAL INDEX ROSE 4 EVERYBODY'S HAPPY SAYS PETER REICHENBACH A PORTFOLIO MANAGER AND ASSISTANT VICE PRESIDENT OF UNION BANK OF SWITZERLAND EVERYBODY'S MAKING MONEY EXCEPT FOR THE LOCALS THAT IS MANY OF THEM HAVE ALREADY PROFITED FROM THE RISE IN ASIAN STOCKS SO FAR THIS YEAR AND FIGURE LAST WEEK'S RALLY BRINGS THE REGION ONE STEP CLOSER TO A CORRECTION AS THAILAND'S MAIN INDEX PREPARED TO BREAK THROUGH A MAJOR PSYCHOLOGICAL CEILING EARLIER THIS MONTH FOR INSTANCE MANY THAI INVESTORS SEIZED UPON THE VIOLENCE IN MOSCOW AS AN EXCUSE TO UNLOAD THEIR OWN STOCKS AND DESPITE FOREIGNERS' BULLISHNESS ON SINGAPORE STOCKS A GOVERNMENT PROGRAM THERE IS STILL PRODDING RELUCTANT CITIZENS TO PUT SOME OF THEIR HEFTY SAVINGS IN SHARES OF LOCAL COMPANIES LOCALS IN HONG KONG ARE USUALLY KEEN TO JUMP ON A RISING MARKET BUT THEY SHOW EVEN CLEARER SIGNS THAT THEY'RE NOT PLAYING ALONG WITH THE GWEILOS OR GHOSTMEN AS WESTERNERS ARE CALLED RENEWED TENSION BETWEEN HONG KONG AND BEIJING OVER DEMOCRATIC REFORM IN THE COLONY MAKES LOCALS THINK STOCKS LOOK A BIT SCARY ON THE POLITICAL FRONT SAYS RICHARD WITTS MANAGING DIRECTOR OF UNITED MOK YING KIE LTD BROKERAGE BUT US INVESTORS ALREADY REGARD HONG KONG AS A CHINESE CITY SO THEY DON'T KNOW WHAT THE BIG DEAL IS AS A RESULT ANALYSTS NOTE MANY OF THE SMALL STOCKS AND WARRANTS THAT HONG KONG INVESTORS FAVOR HAVE LAGGED BEHIND THE BLUE CHIPS THAT FOREIGN INVESTORS PLAY INDEED WHILE FOREIGNERS WERE TALKING UP HONG KONG STOCKS TUESDAY THOUSANDS OF HONG KONGERS WERE MORE ENTHRALLED WITH RUMORS THAT A LOCAL TRAWLER HAD CAUGHT A MERMAID THE REAL MYTHHUNTERS THOUGH MAY BE AMERICAN US INVESTORS' YEN TO ESCAPE BOTH ROCKBOTTOM INTEREST RATES AND RELATIVELY LETHARGIC CORPORATE EARNINGS GROWTH AT HOME HAS SPAWNED A DANGEROUSLY SIMPLE LOVE AFFAIR WITH ASIAN STOCKS ESPECIALLY THOSE TIED SOMEHOW TO CHINA'S ECONOMIC BOOM CONSIDER THE AWESTRUCK REPORT FROM MORGAN STANLEY INTERNATIONAL INC WHICH MANY FOREIGN BROKERS HERE SAY SPARKED THEIR CLIENTS' MOST RECENT BUYING SPREE WE WERE ALL STUNNED BY THE ENORMOUS SIZE OF CHINA WROTE BARTON BIGGS THE FIRM'S NEW YORKBASED DIRECTOR OF GLOBAL STRATEGY AFTER GUIDING SENIOR US AND EUROPEAN FUND MANAGERS ON THEIR FIRST TRIP THERE LAST MONTH SOMETIMES YOU HAVE TO SPEND TIME IN A COUNTRY TO GET REALLY FOCUSED ON THE INVESTMENT CASE HE ADDED AFTER EIGHT DAYS IN CHINA I'M TUNED IN OVERFED AND MAXIMUM BULLISH TO ACT ON THAT INSTANT BULLISHNESS INVESTORS WERE ADVISED TO BUY SHARES OF SUCH HONG KONG UTILITIES AS CHINA LIGHT & POWER CO THE STOCK HAS JUMPED MORE THAN 12 THIS MONTH TO 5050 BUT AS AN ALMOST EXCLUSIVELY HONG KONG UTILITY CHINA LIGHT AND POWER IS NOT EXPOSED TO CHINA'S ECONOMIC GROWTH SAYS NICK MOAKES A HONG KONGBASED SENIOR ANALYST FOR SG WARBURG SECURITIES FAR EAST LTD WHEN YOU TALK ABOUT THE CHINA PLAY YOU ARE TALKING ABOUT EARNINGS GROWTH NOT SOME AIRYFAIRY VIEW OF CHINA AND MR BIGGS IS NAIVE TO EASILY DISMISS THE ECONOMIC AUSTERITY PROGRAM CHINA IS PURSUING TO TAME INFLATION SAYS ONE CHINA EXPERT IN HONG KONG WHO DEALS REGULARLY WITH BEIJING OFFICIALS MR BIGGS HAS SWALLOWED EVERYTHING THAT HAS BEEN TOLD TO HIM HE ADDS AS US INVESTORS LOOK FOR WAYS TO TUNE IN TO MORGAN STANLEY'S MAXIMUM BULLISHNESS PROFESSIONAL INVESTORS HERE ARE HAVING A TOUGH TIME FINDING SHARES THAT ARE STILL WORTH BUYING IN HONG KONG WE THINK THE MOST POWERFUL ARGUMENTS FOR STOCK MARKET GAINS ARE TO BE FOUND IN SOUTHEAST ASIA OUTSIDE HONG KONG SAYS PETER EADONCLARKE CHIEF INVESTMENT OFFICER OF GT MANAGEMENT ASIA LTD AND WE ARE FUNDING LARGE POSITIONS THERE BY SELLING IN HONG KONG AND JAPAN I AM TAKING PROFITS ADDS UBS' MR REICHENBACH THIS IS NOT A UBS OPINION BUT I THINK THIS WENT TOO FAR TOO FAST AND I AM WAITING FOR A CORRECTION TO GET BACK IN TO BE SURE NO ONE IS TALKING ABOUT AN IMMINENT HONG KONG CRASH MR REICHENBACH RECALLS WORKING AS AN ANALYST IN TOKYO WHEN JAPANESE STOCKS PEAKED AND COLLAPSED AT THE END OF 1989 AND NOTES THAT JAPAN'S MARKET WAS PLAGUED BY RISING INTEREST RATES AND FALLING CORPORATE EARNINGS HONG KONG ON THE OTHER HAND IS STILL UNDERPINNED BY RISING EARNINGS AND LOW INTEREST RATES IN FACT GROWING US INTEREST WILL LIKELY HELP MAKE HONG KONG'S MARKET MORE MATURE IN COMING YEARS EVEN LAST WEEK'S MARKETLEADING 22 RISE IN SHARES OF HONG KONG TELECOMMUNICATIONS INC SUGGESTS THAT US INVESTORS ARE TRYING TO PLAY THE CURRENTLY HOT TELECOM THEME AS MUCH THROUGH SHARES OF THE POWERFUL ASIAN SECTOR AS THROUGH STOCK LISTED IN THE US THIS IS THE FIRST MEGATREND TO HIT THE US IN WHICH THE FAR EAST CAN PARTICIPATE SAYS DAVID BARDEN AN ANALYST AT BARING SECURITIES HONG KONG LTD FOR NOW HOWEVER ASIAN STOCKS LOOK SET FOR NOTHING MORE SOPHISTICATED THAN A TUG OF WAR BETWEEN TWO VERY DIFFERENT GUT FEELINGS THE USLED RALLY IN HONG KONG'S MARKET SUGGEST CONDITIONS HERE HAVE UNDERGONE A PSYCHOLOGICAL CHANGE IN RECENT MONTHS SAYS MR REICHENBACH NOT A CHANGE IN FACT LONDON SHARES POWERED TO A RECORD CLOSE FRIDAY AS AN EARLY SURGE CAUGHT MOST DEALERS OFFGUARD AND FORCED THEM TO SCRAMBLE TO COVER UNDERWEIGHTED POSITIONS AND FRANKFURT STOCKS CLOSED SHARPLY HIGHER AT A NEW HIGH TOKYO EQUITIES ROSE BOOSTED BY POSITIVE SENTIMENT FROM THE DOLLAR'S STRENGTH AGAINST THE YEN AND SOLID BUYING SUPPORT FROM JAPANESE PUBLIC FUNDS DESPITE LATE PROFITTAKING WORLDWIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT 11392 UP 085 REFLECTING INCREASES IN THE ASIAN/PACIFIC EUROPEAN AND AMERICAN MARKETS COMPUTER STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT 8197 UP 233 OR 29 WITH APPLE COMPUTER OF THE US POSTING AN 1895 GAIN IN ITS LOCAL CURRENCY PLANTATION STOCKS TRAILED AT 16963 DOWN 24 OR 14 WITH DUNLOP OF MALAYSIA SLIDING 52 IN LOCAL CURRENCY IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX RALLIED 345 POINTS OR 11 TO 31208 AFTER ALSO RECORDING A RECORD INTRADAY HIGH OF 31267 THE FT 30STOCK INDEX ADVANCED 269 POINTS OR 12 TO 23543 VOLUME WAS 7991 MILLION SHARES UP FROM 6182 MILLION SHARES A DAY EARLIER THE MARKET HAD LOGGED A NET LOSS FOR THE WEEK THROUGH THURSDAY AND MOST BETS WERE ON FURTHER PRICE DROPS SHORTSELLERS WHO HAD USED THIS STRATEGY HOPING TO BUY SHARES AT LOWER PRICES TO REPLACE THOSE THEY HAD BORROWED AND SOLD AT HIGHER PRICES WERE FORCED TO BUY TO COVER LOSSES AS THE MARKET RALLIED AND THIS HELPED PROVIDE UPWARD MOMENTUM AS EUROPEAN INVESTORS FOCUSED ON TROUBLES FOR THE BELGIAN AND FRENCH CURRENCIES EXPECTATIONS HEIGHTENED FOR GOVERNMENTS TO ABANDON TRYING TO MAINTAIN THE HIGH VALUE OF THEIR CURRENCIES AND START CUTTING INTEREST RATES TO PROPEL ECONOMIC GROWTH IN FRANKFURT THE DAX 30STOCK INDEX SURGED 2496 POINTS OR 13 TO 201503 AS ALL SHARES IN THE INDEX ADVANCED PRICES GOT A BOOST LATE IN THE SESSION AS CONTRACTS ON THE FUTURES AND OPTIONS EXCHANGE EXPIRED AND STOCK INVESTORS INCLUDING GERMAN AND FOREIGN INSTITUTIONS TOOK ADVANTAGE OF THE PREVIOUS DAY'S DECLINES TO BUY IN DESPITE CONCERNS ABOUT THE NATIONAL CURRENCY AND INTEREST RATES STOCKS IN PARIS SURGED 12 AS INVESTORS TOOK THEIR CUE FROM STRENGTH ON OTHER EUROPEAN BOURSES AND THE FRENCH BOND MARKET LIKEWISE BRUSSELS SHARES CLIMBED TO A RECORD FINISH ON EXPECTATIONS THAT BELGIUM WILL DITCH ITS STRONG CURRENCY POLICY PROVIDING INTERESTRATE RELIEF TO COMPANIES AND A BOOST IN FOREIGNEXCHANGE COMPETITIVENESS TO EXPORTERS AMSTERDAM STOCKS RALLIED ON A STRONGER DOLLAR AND HOPES FOR EUROPEAN RATE CUTS STOCKHOLM PRICES ADVANCED TO THEIR SECOND ALLTIME HIGH IN THREE DAYS LED BY TELECOMMUNICATION ISSUES AND ZURICH SHARES SOARED 1 PROPELLED BY CHEMICAL AND BANKING ISSUES THE PUBLIC FUNDS WHICH THE JAPANESE GOVERNMENT HAS SET ASIDE FROM ITS POOL OF POSTAL SAVINGS FOR POSSIBLE INVESTMENT IN STOCKS AND WHICH RESCUED THE NIKKEI FROM ITS DROP BELOW 20000 THURSDAY FLEXED THEIR MUSCLES AGAIN FRIDAY HELPING THE MARKET FINISH AN OTHERWISE VULNERABLE WEEK ON A HIGHER NOTE EXPORTERS PARTICULARLY MAKERS OF CONSUMER ELECTRONICS PRODUCTS ROSE STRONGLY AS THE YEN WEAKENED AGAINST THE DOLLAR IN SYDNEY DESPITE PROFITTAKING IN THE MARKET'S CURRENT BULL RUN PRICES ROSE YET AGAIN TO A SIXYEAR HIGH MAKING LAST WEEK'S GAIN 24 SINGAPORE SHARES SOARED ALMOST 2 TO THEIR FIFTH CONSECUTIVE RECORD HIGH AS US FUNDS PILED INTO THE MARKET IN SEARCH OF BLUE CHIPS MANILA SHARES ALSO RACKED UP A NEW HIGH FOR THE FIFTH STRAIGHT DAY BOOSTED AGAIN BY TELEPHONESECTOR GAINS AND TAIPEI STRETCHED ITS WINNING STRING TO FIVE SESSIONS ON OPTIMISM ABOUT A PROPOSED CUT IN THE STOCK TRANSACTION TAX BUT SEOUL PRICES FELL ON RUMORS OF BANKRUPTCIES HERE ARE PRICE TRENDS ON THE WORLD'S MAJOR STOCK MARKETS AS CALCULATED BY MORGAN STANLEY CAPITAL INTERNATIONAL PERSPECTIVE GENEVA TO MAKE THEM DIRECTLY COMPARABLE EACH INDEX CALCULATED IN LOCAL CURRENCIES IS BASED ON THE CLOSE OF 1969 EQUALING 100 THE PERCENTAGE CHANGE IS SINCE YEAREND 9310180094 931018 INTERNATIONAL CABLE TELECOMMUNICATIONS FIRMS IN JAPAN ATTRACT US INVESTMENT BIG AMERICAN CONCERNS SEE THE NETWORKS AS KEY TO GLOBAL INFORMATION BY DAVID P HAMILTON STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO SOME OF AMERICA'S BIGGEST COMMUNICATIONS BUSINESSES HAVE RECENTLY ACQUIRED SIGNIFICANT EQUITY HOLDINGS IN JAPANESE CABLE AND TELECOMMUNICATIONS CONCERNS IN THE APPARENT BELIEF THAT ADVANCED TELEPHONE AND CABLE NETWORKS WILL BE KEY TO A NEW GENERATION OF GLOBAL INFORMATION SERVICES THE ACQUISITIONS ARE RAISING THE STAKES IN JAPAN'S INFORMATION INDUSTRY WHERE THUS FAR GOVERNMENT REGULATION AND A GENERAL LACK OF VISION HAVE RETARDED THE GROWTH OF THESE NETWORKS WHERE JAPAN SEES ITS OWN SHORTCOMINGS HOWEVER THESE WESTERN FIRMS SEE OPPORTUNITIES LAST MONTH FOR INSTANCE US CABLE GIANT TELECOMMUNICATIONS INC PAID ROUGHLY 23 MILLION FOR 18 OF A SMALL JAPANESE CABLEPROGRAMMING COMPANY MAJORITYOWNED BY BIG TRADING COMPANY SUMITOMO CORP THOUGH THE DEAL PROBABLY WOULDN'T MERIT A FOOTNOTE IN TCI'S GIANT PROPOSED MERGER WITH BELL ATLANTIC CORP IT PROVIDES AN OPENING INTO JAPAN'S STILLTINY CABLE MARKET AND HOLDS THE PROMISE OF GREATER COOPERATION BETWEEN TCI AND SUMITOMO WORLDWIDE SIMILARLY PACIFIC TELESIS GROUP ONE OF THE BABY BELLS HAS FOR MORE THAN A YEAR HELD 10 OF ONE OF JAPAN'S MAJOR INTERNATIONAL LONGDISTANCE CARRIERS AND 13 TO 15 STAKES IN THREE REGIONAL DIGITAL CELLULAR COMPANIES MOTOROLA INC TOO HOLDS 8 AND 45 RESPECTIVELY OF TWO DIGITAL CELLULAR COMPANIES IN JAPAN AND SIMILAR STAKES IN A HANDFUL OF PAGING OPERATORS AND OTHER SMALL COMPANIES AND TIME WARNER ENTERTAINMENT JAPAN INC A JOINT VENTURE WITH TOSHIBA CORP AND ITOCHU CORP THAT IS 50OWNED BY TIME WARNER INC HAS BEGUN TECHNICAL COLLABORATION WITH A CABLE SYSTEM IN SOUTHERN JAPAN AND IS CONSIDERING FUTURE INVESTMENTS IN BOTH CABLE SYSTEMS AND LOCAL TELEPHONE COMPANIES A FEW NONUS FIRMS ALSO ARE INVESTING IN JAPAN BRITISH CABLE & WIRELESS PLC FOR INSTANCE OWNS 18 OF INTERNATIONAL DIGITAL COMMUNICATIONS INC THE SAME LONGDISTANCE CARRIER IN WHICH PACTEL HAS INVESTED MANY OF THESE INVESTMENTS REPRESENT A STRAIGHTFORWARD DESIRE TO BE PART OF THE JAPANESE MARKET ONE OF THE WORLD'S LARGEST MARKETS FOR TELECOMMUNICATIONS SERVICES AND ALSO ONE OF THE MOST DIFFICULT TO BREAK INTO OUR BASIC STRATEGY IS TO BE INVESTED IN WIRELESS OPPORTUNITIES IN THE LEADING ECONOMIES OF THE WORLD SAYS DAVID SHORT PACTEL'S MANAGING DIRECTOR FOR ENGINEERING IN TOKYO OTHER DEALS HOWEVER ILLUSTRATE JAPAN'S DESIRE TO BENEFIT FROM SUPERIOR WESTERN EXPERTISE AND FOREIGN FIRMS' WILLINGNESS TO SUPPLY IT TAKE FOR INSTANCE TCI'S INVESTMENT IN THE CABLEPROGRAMMING COMPANY SUMITOMO THE MAJORITY HOLDER IS ONE OF THE LARGER OWNERS OF CABLETELEVISION NETWORKS IN JAPAN AND ACCORDING TO A SUMITOMO SPOKESMAN TCI'S INVESTMENT IS BUT THE FIRST STEP IN SUMITOMO'S GLOBAL PARTNERSHIP WITH TCI TO DEVELOP VARIOUS MEDIA BUSINESSES THEY ARE NOW OUR MANAGEMENT CONSULTANTS AND ADVISERS HE SAYS WE ARE WORKING VERY CLOSELY WITH THEM TO RENOVATE ALL ASPECTS OF OUR OPERATIONS PROBABLY AT A LATER STAGE WE WILL BE ASKING THEM TO HELP US TO ACQUIRE FILMS FOR BROADCAST ON MORE FAVORABLE TERMS TCI OFFICIALS COULDN'T BE REACHED FOR COMMENT THESE KINDS OF FOREIGN INVESTMENTS OBVIOUSLY COULD PAY OFF HANDSOMELY IF THE NEW INFORMATION SERVICES TAKE OFF IN JAPAN SOME DAY BUT FOREIGN FIRMS COULD FACE OBSTACLES GOVERNMENT REGULATION OF CABLE TELEVISION AND PHONE SERVICE HAS YET TO SLACKEN APPRECIABLY IF AND WHEN DEREGULATION DOES COME IT COULD UNFETTER NIPPON TELEGRAPH & TELEPHONE CORP JAPAN'S LARGEST DOMESTIC CARRIER BY ITS SHEER SIZE ALONE NTT WHICH CURRENTLY IS PROHIBITED FROM CARRYING ENTERTAINMENT BROADCASTS OR OPERATING INTERNATIONALLY IS LIKELY TO BE A FEARSOME COMPETITOR TO MOST OF THE COMPANIES IN WHICH FOREIGNERS HAVE INVESTED MOREOVER SOME CRITICS ARGUE THAT US FIRMS MIGHT ALREADY BE SETTING UP THEIR FUTURE COMPETITORS IN SUCH A WAY THAT THEIR INVESTMENTS WILL NEVER PAY OFF LET'S FACE IT IF YOU RUN ANY SORT OF COMMUNICATIONS NETWORK HERE WHERE YOU DEAL WITH THE PUBLIC THE INVESTMENT IS SO MASSIVE AGAINST RETURNS SO FAR IN THE FUTURE THAT FEW IF ANY US COMPANIES WILL GO ALONE SAYS JOHN STERN EXECUTIVE DIRECTOR OF THE AMERICAN ELECTRONICS ASSOCIATION MOST WILL TAKE THE TIMEHONORED ROUTE OF PARTNERING WITH A DOMESTIC FIRM UNTIL THE JAPANESE HAVE LEARNED ENOUGH ABOUT THE BUSINESS THAT THE AMERICANS ARE NO LONGER NECESSARY 9310180093 931018 HOUSE APPROVES 11 BILLION EXTENSION OF EMERGENCY AID TO THE UNEMPLOYED BY JACKIE CALMES STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON IN THE END THE HOUSE'S VOTE TO EXTEND A NEARLY TWOYEAROLD PROGRAM OF EMERGENCY JOBLESS BENEFITS WAS OVERWHELMING BUT THE SEQUENCE OF EVENTS LEADING TO THAT RESULT LEFT NEARLY EVERYONE UNHAPPY THE 30295 VOTE FRIDAY FOLLOWED A HOSTILE DEBATE THAT SPARKED COMPLAINTS OF IMMIGRANT BASHING IT CAME TWO WEEKS AFTER THE CURRENT PROGRAM LAPSED FOLLOWING TWO FAILED ATTEMPTS AT PASSAGE BY DEMOCRATIC LEADERS THE STRUGGLE OVER THE RELATIVELY MODEST JOBLESSAID EXTENSION UNDERSCORES THE STRUGGLES THAT PRESIDENT CLINTON AND CONGRESS WILL FACE IN FINANCING MOREAMBITIOUS INTITIATIVES THE 11 BILLION MEASURE ALLOWS LONGTIME UNEMPLOYED WORKERS WHO HAVE EXHAUSTED THEIR BASIC 26 WEEKS OF STATE AID TO QUALIFY FOR AN EXTRA SEVEN OR 13 WEEKS OF FEDERAL AID DEPENDING ON THEIR STATE'S JOBLESS RATE THE LATEST EXTENSION THE FOURTH WILL EXPIRE FEB 5 AND BENEFIT ABOUT ONE MILLION PEOPLE IT BRINGS TO ABOUT 25 BILLION THE AMOUNT THAT HAS BEEN SPENT ON THE EXTENDED JOBLESS BENEFITS SINCE NOVEMBER 1991 WHEN CONGRESS WON A BRUISING BATTLE WITH THENPRESIDENT BUSH TO APPROVE THE PROGRAM THE SENATE IS EXPECTED TO PASS THE MEASURE THIS WEEK THE CURRENT PROGRAM EXPIRED OCT 2 AFTER HISPANIC DEMOCRATS BLOCKED AN EXTENSION MEASURE TO PROTEST A PROVISION TAKING AIM AT SOME IMMIGRANTS' WELFARE BENEFITS HOUSE LEADERS AGREED TO DROP THE BILL'S COSTSAVING PROVISION AND TO HOLD DOWN ITS OVERALL COST INSTEAD BY SHAVING FIVE WEEKS FROM THE PROGRAM'S EXTENSION MAKING IT EXPIRE JAN 1 BUT THAT ANGERED REP DAN ROSTENKOWSKI D ILL THE HOUSE WAYS AND MEANS COMMITTEE CHAIRMAN WHOSE PANEL DRAFTED THE BILL AS WELL AS NEARLY ALL REPUBLICANS AND MANY DEMOCRATS THEY DEFEATED THE SCALEDBACK VERSION IN A THURSDAY VOTE THAT STUNNED THE DEMOCRATIC LEADERS THE FINAL VERSION RETAINS THE IMMIGRANT PROVISION AND THE PROGRAM'S FEB 5 EXPIRATION DATE THE HISPANIC LAWMAKERS AND THEIR SUPPORTERS ARGUED THAT THE SUBSTANCE OF THE PROVISION WASN'T AT ISSUE WE MADE NO SECRET OF OUR FEELING THAT IN TODAY'S ANTIIMMIGRANT CLIMATE ANYTHING THAT SINGLES OUT IMMIGRANTS AND WE'RE TALKING ABOUT PEOPLE HERE LEGALLY MAKES US VERY UNCOMFORTABLE SAID REP JOSE SERRANO D NY CHAIRMAN OF THE 19MEMBER HISPANIC CAUCUS THE DEBATE WAS BITTERLY PARTISAN VOTE FOR THE INTERESTS OF TAXPAYERS BY OPPOSING WELFARE BENEFITS FOR ALIENS SAID TEXAS REP BILL ARCHER IN A CHARACTERISTIC REPUBLICAN ATTACK BUT REP XAVIER BECERRA D CALIF OBJECTED THAT THE POLITICIANS WERE MAKING SCAPEGOATS OF IMMIGRANTS EVERYBODY WANTS TO BE ON THE BANDWAGON BEYOND THE CHARGED ISSUES OF IMMIGRATION AND WELFARE THE MESSY EVOLUTION OF THE JOBLESSAID ISSUE ILLUSTRATED HOW DIFFICULT IT IS FOR LAWMAKERS TO FUND EVEN INITIATIVES THAT ENJOY BIPARTISAN SUPPORT ESPECIALLY AFTER PASSING MR CLINTON'S DEFICITREDUCTION PACKAGE WITH ITS HUGE TAX INCREASE LAWMAKERS ARE CHARY OF PROPOSING ANY TAXRAISING IDEA SO THEY HAVE HAD TO TURN ELSEWHERE TO PAY FOR THE BULK OF THE JOBLESS AID A SEPARATE PROVISION THAT WAS LITTLE MENTIONED WOULD SAVE AN ESTIMATED 764 MILLION OVER FIVE YEARS BY REQUIRING STATES TO IDENTIFY PEOPLE WHO ARE LIKELY TO BE CHRONICALLY UNEMPLOYED AND TO HELP THEM FIND JOBS THAT WOULD CUT DEMAND FOR EMERGENCY JOBLESS BENEFITS SOME CRITICS SAID SUCH SAVINGS WERE PROBABLY ILLUSORY BUT NO ONE OFFERED AN ALTERNATIVE IDEA 9310180092 931018 GLOBAL VIEW NEW LESSONS ON THE USE AND MISUSE OF TROOPS BY GEORGE MELLOAN PRESIDENT CLINTON CAN'T BUY ANY LUCK IN HIS COMMAND OF US MILITARY FORCES AS THE MONTH BEGAN THERE WAS THE COSTLY DEBACLE IN SOMALIA LAST WEEK HAITIAN DEMONSTRATORS MERELY THROUGH A SHOW OF FORCE DROVE AWAY THE US TROOPSHIP HARLAN COUNTY WITH 218 US AND CANADIAN TROOPS ABOARD THIS EMBARRASSMENT BECAME A TRAGEDY WHEN HAITIAN THUGS PROCEEDED TO KILL H GUY MALARY AND TWO OF HIS AIDES THESE REVERSES ARE PARTICULARLY DAMAGING TO THE PRESIDENT BECAUSE OF HIS PERSONAL HISTORY AS A WAR PROTESTER AND VAGUELY ANTIMILITARY POLITICIAN HE HAS SELDOM BEEN ABLE TO PUT A FOOT RIGHT IN ANYTHING HAVING TO DO WITH MILITARY MATTERS SINCE HE BECAME COMMANDER IN CHIEF HIS DECISION TO MAKE GAY RIGHTS AN ISSUE IN THE MILITARY STIRRED UP A FUROR THAT ONLY DIMINISHED WHEN HE RETREATED FROM HIS ORIGINAL STANCE HIS MEMORIAL DAY VISIT TO THE VIETNAM WALL ONLY SERVED TO REMIND A LOT OF SOLDIERS THAT HE WAS NOT PRESENT AT THAT WAR A VIETNAM AIR FORCE HERO MAJ GEN HAROLD N CAMPBELL HAD TO BE CASHIERED FOR MAKING DISPARAGING REMARKS ABOUT THE PRESIDENT IN A BANQUET SPEECH AT A DUTCH AIR BASE HIS FRIEND AND FORMER POLITICAL FUND RAISER SECRETARY OF THE NAVY JOHN H DALTON TRIED TO FIRE THE NAVY'S TOP ADMIRAL FRANK B KELSO OVER THE TAILHOOK SCANDAL ONLY TO BE REVERSED BY MR CLINTON'S DEFENSE CHIEF LES ASPIN ON TOP OF THIS THERE IS THE MATTER OF THE DEFENSE BUDGET IT IS PARTLY CIRCUMSTANTIAL THAT BILL CLINTON CAME INTO OFFICE SHORTLY AFTER THE END OF THE COLD WAR AND THUS HAS THE TASK OF DOWNSIZING THE US MILITARY BUT IN THE VIEW OF SOME SOLDIERS HE SEEMS TO ENJOY THE TASK A BIT MORE THAN A COMMANDER IN CHIEF SHOULD HE GAVE THIS FISCAL YEAR'S BUDGET AN 11 WHACK FROM THE AMOUNT SPENT IN FISCAL 1992 THE MAIN BURDEN OF THESE CUTS MAY HAVE TO BE BORNE BY THE OFFICERS AND MEN THEMSELVES SINCE THE PENTAGON AND CONGRESS TEND TO DEFEND PORK BARREL PROJECTS MORE FIERCELY THAN THEY DO SPENDING FOR PERSONNEL AND OPERATIONS AND MAINTENANCE ALREADY COSTOFLIVING ALLOWANCES HAVE BEEN FROZEN AND EXTENSIVE REDUCTIONS IN FORCE OR RIFS ARE UNDERWAY IT IS A MARK OF HOW DISCIPLINED THE US MILITARY HAS BECOME THAT ON THE WHOLE THE TROOPS HAVE SALUTED AND KEPT QUIET ABOUT THEIR GRIEVANCES THERE WAS GENERAL CAMPBELL'S OUTBURST OF COURSE BUT HE PAID DEARLY FOR IT THE GAYS ISSUE WAS RESOLVED FAIRLY PEACEFULLY THIS WAS DONE BY GOING BACK TO THE OLD DON'T ASK DON'T TELL DON'T PURSUE PRACTICE OF FORMER TIMES ALTHOUGH IT NOW APPEARS THAT THE THE COURTS AREN'T GOING TO LET EITHER THE PRESIDENT OR THE JOINT CHIEFS OFF EASILY A RECENT LOS ANGELES COURT DECISION BANNING DISCRIMINATION AGAINST GAYS IN THE MILITARY COULD FAN THE FLAMES AGAIN CONTROVERSIAL AS THESE ISSUES HAVE BEEN THE PRESIDENT HAS HAD HIS SUPPORTERS AS WELL AS DETRACTORS EVEN WITHIN THE MILITARY MILITARY OFFICERS BELIEVE IN DISCIPLINE MANY SUPPORTED THE PUNISHMENTS METED OUT TO THOSE DIRECTLY INVOLVED IN THE TAILHOOK HIJINKS IN LAS VEGAS TWO YEARS AGO EVEN IF THEY ALSO THOUGHT FIRING ADMIRAL KELSO TO BE EXCESSIVE GENERAL CAMPBELL WAR HERO OR NOT WAS OUT OF BOUNDS UNDER THE MILITARY CODE OF JUSTICE FOR INSULTING HIS COMMANDER IN CHIEF BUDGET CUTS ALTHOUGH PAINFUL HAVE BEEN GENERALLY ACCEPTED AS A NATURAL RESPONSE TO THE END OF THE COLD WAR BUT EVENTS OF THE LAST TWO WEEKS HAVE RAISED SOME OTHER EVEN MORE SERIOUS ISSUES THEY DERIVE FROM THE PRESIDENT'S LACK OF MILITARY EXPERIENCE THE QUESTION IS WHETHER MR CLINTON HAS ANY UNDERSTANDING OF THE PROPER USES OF COMBAT TROOPS IN SOMALIA SOME OF AMERICA'S BEST SOLDIERS WERE THROWN INTO BATTLE WITHOUT PROPER SUPPORT AS A RESULT THEY SUFFERED UNNECESSARY CASUALTIES IN LAST WEEK'S EPISODE VISAVIS HAITI THE INTENTION SEEMED TO BE TO INSERT TROOPS BEARING ONLY SIDEARMS INTO A DANGEROUS SITUATION TO ACT AS ADVISERS IT WAS NO DOUBT FORTUNATE THAT THE HAITIANS ON THE SHORE MADE SUCH RUCKUS THAT THIS FOOLISH MISSION WAS ABORTED BEFORE THE AMERICANS AND CANADIANS SUFFERED CASUALTIES BUT IT DID LEAVE AMERICANS AND CANADIANS ALREADY IN HAITI IN A TICKLISH POSITION MOREOVER THE WHOLE SHOW YET ANOTHER UN VENTURE IN POLITICAL MANAGEMENT WAS ENORMOUSLY EMBARRASSING TO ALL THOSE RESPONSIBLE THE FAILURE IN BOTH SOMALIA AND HAITI WAS AN APPARENT LACK OF UNDERSTANDING ABOUT WHAT WAR IS ALL ABOUT BECAUSE THE BUCK STOPS WITH THE PRESIDENT THAT FAILURE HAS TO BE LAID AT HIS DOOR HIS USE OF TROOPS HAS BEEN TENTATIVE AND UNCERTAIN WITH MISSIONS AND ROLES NOT CLEARLY DEFINED HE HAS BEEN ALL TOO WILLING TO SHARE COMMAND WITH THE UN A BODY STRUCTURALLY INCAPABLE OF EXERCISING PROPER DEPLOYMENTS OF COMBAT TROOPS NATIONAL LEADERS WHO HAVE HAD MILITARY EXPERIENCE WOULD HAVE RECOGNIZED THESE ERRORS IMMEDIATELY WINSTON CHURCHILL IN WORLD WAR II VIGOROUSLY RESISTED ALL IDEAS OF USING FIGHTING TROOPS FOR ANY PURPOSE OTHER THAN FIGHTING DWIGHT EISENHOWER MANAGER OF THE BIGGEST MILITARY COUNTEROFFENSIVE IN HISTORY KNEW THE DANGERS OF HALFMEASURES HE RESISTED NUMEROUS ENTREATIES TO COMMIT US TROOPS TO FIGHTS AROUND THE WORLD AND MANAGED TO END THE KOREAN WAR HONORABLY WHEN HE DID SEE A NEED TO IMPRESS EGYPT'S GAMAL ABDEL NASSER WITH A SHOW OF FORCE HE DID IT BLOODLESSLY WITH A LARGESCALE LANDING IN LEBANON NASSER GOT THE MESSAGE IT WAS AN EISENHOWER MAXIM THAT IF YOU DISPATCH MORE TROOPS THAN YOU THINK YOU NEED YOU WILL MINIMIZE CASUALTIES GEORGE BUSH ALSO A COMBAT VETERAN APPLIED THIS LESSON WELL IN THAT MODEL MILITARY EXERCISE CALLED DESERT STORM DEMOLISHING A VERY FORMIDABLELOOKING IRAQI ARMY IN TODAY'S DISORDERED WORLD THERE IS APPEAL TO THE IDEA OF USING MILITARY MIGHT TO TRY TO INSTALL DEMOCRACY IN BENIGHTED NATIONS WHERE OPPRESSIVE REGIMES OR BLOODY WARS ARE INFLICTING MISERY AND HUNGER PLACES SUCH AS SOMALIA AND HAITI AMERICA'S FIGHTING FORCES ARE SYMPATHETIC TO THESE EFFORTS IN PART BECAUSE RELIEVING HUNGER AND MISERY SEEMS LIKE SOMETHING WORTH FIGHTING FOR AND ALSO BECAUSE THEY WANT TO PRESERVE THE US MILITARY BY GIVING IT MISSIONS TO PERFORM BUT THEY ALSO HAVE A STRONG INTEREST IN SEEING TO IT THAT IF THEY ARE ASSIGNED TO SUCH MISSIONS THEY HAVE SUFFICIENT CONTROL AND FIREPOWER TO CARRY THEM OUT SUCCESSFULLY OTHERWISE THEY NOT ONLY FACE UNNECESSARY LOSSES OF LIVES BUT ALSO A DECLINE IN PUBLIC ESTEEM FOR THEIR FIGHTING ABILITY AND PARTLY AS A CONSEQUENCE DIMINISHED TROOP MORALE BUT IF THE PRESIDENT IS GOING TO APPLY US MILITARY MIGHT TO RELIEF EFFORTS NATION BUILDING AND THE CREATION OF WORLD ORDER HE AND HIS ADVISERS NEED TO THINK MORE CAREFULLY ABOUT HOW TO DO THESE THINGS MOREOVER HE SHOULD MAKE SURE THAT AFTER HIS BUDGET CHOPS SOME MILITARY MIGHT WILL STILL EXIST 9310180091 931018 TECHNOLOGY IBM TO UNVEIL PC BASED ON INTEL'S PENTIUM CHIP NEW YORK INTERNATIONAL BUSINESS MACHINES CORP TODAY WILL INTRODUCE ITS FIRST DESKTOP PERSONAL COMPUTER BASED ON INTEL CORP'S STATEOFTHEART PENTIUM CHIP BUT INSTEAD OF SELLING THE NEW MACHINE UNDER THE PS/2 LINE AIMED AT ITS LARGEST CORPORATE ACCOUNTS IBM WILL OFFER THE PENTIUM MODEL UNDER THE VALUEPOINT SERIES VALUEPOINT IS TARGETED AT A BROADER MARKET AND COMPETES WITH INDUSTRYSTANDARD PCS FROM COMPAQ COMPUTER CORP GATEWAY 2000 AND OTHERS THE MOVE SIGNALS THE RISING IMPORTANCE OF THE VALUEPOINT PRODUCT LINE WHICH STARTED UP ONLY ONE YEAR AGO AND HAS BECOME ONE OF IBM PERSONAL COMPUTER CO'S MOST SUCCESSFUL BRANDS IT HAS SOLD MORE THAN ONE MILLION COMPUTERS AND MAKES UP 28 OF THE PC COMPANY'S SALES ACCORDING TO IBM WHILE IBM HAS HAD TROUBLE MEETING DEMAND FOR VALUEPOINT MACHINES IT EXPECTS TO CATCH UP BY THE END OF THIS MONTH SAID ANGELICA HORAITIS A DIRECTOR OF THE VALUEPOINT LINE ABOUT ONETHIRD OF VALUEPOINT SALES ARE TO LARGE BUSINESSES INCLUDING EDUCATION AND GOVERNMENT INSTITUTIONS AND THE REST ARE TO SMALL AND MEDIUMSIZE BUSINESSES PRICES FOR THE NEW VALUEPOINT MODEL WILL START AT 4700 9310180090 931018 AMEX DISCIPLINES 4 INDIVIDUALS IN CASES INVOLVING ALLEGED VIOLATIONS OF ITS RULES BY DAVE KANSAS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE AMERICAN STOCK EXCHANGE ANNOUNCED DISCIPLINARY ACTIONS AGAINST FOUR INDIVIDUALS FOR ALLEGED VIOLATIONS OF EXCHANGE RULES JOHNATHAN G ORNSTEIN OF LOS ANGELES FORMERLY AN EMPLOYEE OF BEAR STEARNS & CO AND PRUDENTIAL SECURITIES INC WAS CENSURED AND FINED 20000 AND BARRED FOR THREE YEARS FROM ASSOCIATION WITH ANY MEMBER OR MEMBER ORGANIZATION AMONG OTHER VIOLATIONS MR ORNSTEIN WAS CHARGED WITH MAKING OPTIONS TRANSACTIONS IN THE ACCOUNTS OF FOUR PUBLIC CUSTOMERS WITHOUT THEIR KNOWLEDGE OR WRITTEN CONSENT MR ORNSTEIN WHO COULDN'T BE REACHED FOR COMMENT ALSO WAS CHARGED WITH CHURNING A CUSTOMER'S ACCOUNT AND ACCEPTING THIRDPARTY ORDERS FOR AN ACCOUNT FROM THE HUSBAND OF A CUSTOMER WITHOUT FIRST RECEIVING WRITTEN AUTHORIZATION FROM THE CUSTOMER HE WAS ALSO CHARGED WITH OFFERING TO REIMBURSE A CUSTOMER FOR LOSSES SUSTAINED IN THE CUSTOMER'S ACCOUNT ALTERING ACCOUNT DOCUMENTS OF A CUSTOMER WITHOUT THE CUSTOMER'S KNOWLEDGE OR CONSENT AND MISREPRESENTING THE STATUS OF THE CUSTOMER'S ACCOUNT TO THE CUSTOMER MR ORNSTEIN SETTLED THE CHARGES WITHOUT ADMITTING OR DENYING THE ALLEGATIONS ROBERT HARDIN CHICAGO WAS CENSURED AND FINED 7500 FOR ALLEGEDLY ASKING HIS CUSTOMERS TO PURCHASE GLENMORE DISTILLERIES CO CLASS B COMMON STOCK WITHOUT DISCLOSING TO HIS CUSTOMERS THAT HE WAS SELLING HIS OWN SHARES OF THE STOCK MR HARDIN WORKED AT PRUDENTIAL SECURITIES INC AT THE TIME OF THE ALLEGED OFFENSES HE WAS ALSO CHARGED WITH ENTERING HIS OWN SELL ORDERS IN THE GLENMORE CLASS B COMMON STOCK AFTER HE HAD ENTERED HIS CUSTOMERS' SOLICITED BUY ORDERS ON THE STOCK AND WAITING FOR HIS CUSTOMERS' BUY ORDERS TO PUSH UP THE PRICE OF THE STOCK BEFORE HE WOULD ENTER HIS OWN SELL ORDERS MR HARDIN WHO COULDN'T BE REACHED FOR COMMENT ALSO WAS CHARGED WITH FAILING TO OBTAIN HIS CUSTOMERS' CONSENT AFTER HE HAD LEARNED THAT IT WAS HIS SHARES OF THE COMPANY THAT WERE CROSSED WITH HIS CUSTOMERS' PURCHASE ORDERS MR HARDIN SETTLED THE CHARGES WITHOUT ADMITTING OR DENYING THE ALLEGATIONS CHARLES V SONSON NORFOLK VA WAS CENSURED AND FINED 5000 AND SUSPENDED FOR ONE YEAR WHICH WAS DEEMED SERVED FOR ALLEGEDLY EFFECTING EXCESSIVE TRANSACTIONS IN THE DISCRETIONARY OPTIONS ACCOUNTS OF FOUR PUBLIC CUSTOMERS MR SONSON FORMERLY OF EF HUTTON & CO WAS ALSO CHARGED WITH FAILING TO PROVIDE CUSTOMERS WITH A WRITTEN EXPLANATION OF AN OPTIONSTRADING PROGRAM KNOWN AS THE OPTION PHASE APPROACH MR SONSON WHO COULDN'T BE REACHED FOR COMMENT SETTLED THE CHARGES WITHOUT ADMITTING OR DENYING THE ALLEGATIONS ARNOLD CANDARY SPOKANE WASH WAS CENSURED AND BARRED FOR FOUR YEARS DEEMED SERVED MR CANDARY FORMERLY OF EF HUTTON WAS CHARGED WITH KNOWINGLY CIRCUMVENTING INSTRUCTIONS OF HIS SUPERIORS BY PURCHASING 15 MILLION OF CERTAIN BONDS FOR A CUSTOMER'S ACCOUNT WITHOUT HAVING THE FUNDS ON DEPOSIT IN THE ACCOUNT AND THEN PROVIDING A LETTER TO A THIRD PARTY THE PURPOSE OF WHICH WAS TO SECURE A LOAN OR LINE OF CREDIT THE LETTER STATED THAT THE 15 MILLION IN BONDS WERE LONG IN THE CUSTOMER'S ACCOUNT WHEN HE KNEW THE BONDS HADN'T BEEN PAID FOR AND COULDN'T BE PLEDGED AS COLLATERAL MR CANDARY WHO COULDN'T BE REACHED FOR COMMENT SETTLED THE CHARGES WITHOUT ADMITTING OR DENYING THE ALLEGATIONS 9310180089 931018 WHO'S NEWS AS SCULLEY LEAVES APPLE IMAGE LINGERS OF A LEADER DISTRACTED BY HIS VISION BY CHARLES MCCOY STAFF REPORTER OF THE WALL STREET JOURNAL JOHN SCULLEY LEAVES APPLE COMPUTER INC WITH A REPUTATION AS A HIGHTECH VISIONARY WHO BUILT AN INDUSTRY POWERHOUSE BUT ULTIMATELY MAY HAVE BEEN BLINDED TO THE MUNDANE MATTERS OF RUNNING IT MR SCULLEY WHO FOR MANY MONTHS HAS WORKED OUT OF NEW YORK RESIGNED FRIDAY AS CHAIRMAN OF THE CUPERTINO CALIF COMPANY THAT HE HAS DOMINATED SINCE WRESTING CONTROL FROM APPLE COFOUNDER STEVEN JOBS IN MAY 1985 THE RESIGNATION WASN'T UNEXPECTED MR SCULLEY ACCORDING TO FRIENDS HAD BEEN IN LIMBO SINCE HE GAVE UP HIS JOB AS CHIEF EXECUTIVE OFFICER IN JUNE AT THE TIME APPLE AND SEVERAL DIRECTORS CALLED MR SCULLEY'S MOVE VOLUNTARY HOWEVER THERE HAS BEEN SPECULATION AND RECENTLY ALLEGATIONS IN A LAWSUIT FILED BY A FORMER APPLE OFFICIAL THAT MR SCULLEY WAS FORCED OUT AS CHIEF EXECUTIVE BY OUTSIDE DIRECTORS NONE OF APPLE'S TOP OFFICIALS HAS COMMENTED ON THAT LAWSUIT ALSO SEVERAL EXECUTIVES CLOSE TO APPLE HAVE SAID THAT IT WAS AGREED BETWEEN MR SCULLEY AND THE APPLE BOARD THAT HE SHOULD LEAVE BEFORE YEAR END MR SCULLEY 54 YEARS OLD COULDN'T BE REACHED TO COMMENT AN APPLE SPOKESMAN SAID THE RESIGNATION WAS PURELY MR SCULLEY'S IDEA MR SCULLEY'S DEPARTURE SET OFF MUCH MUSING ABOUT HIS LEGACY FOR APPLE AND FOR THE ENTIRE COMPUTER INDUSTRY HIS STORY IS WELLKNOWN BY NOW TIRED OF SODAPOP MARKETING MR SCULLEY LEFT PEPSICO INC TO COME TO APPLE IN 1983 APPLE WAS HARDLY OUT OF THE GARAGE AT THAT POINT BUT IT HAD MORE THAN 600 MILLION IN ANNUAL SALES THOUGH MR SCULLEY WAS A MARKETING MAN HE BROUGHT A MEASURE OF PROFESSIONALISM TO A COMPANY THAT AT THE TIME WAS STILL ESSENTIALLY DOMINATED BY TECHNICAL WHIZZES AND YOUNG DREAMERS INCLUDING MR JOBS IN 1985 MR SCULLEY WORRIED ABOUT AMATEURISM AND DRIFT AT APPLE ENGINEERED A BOARDROOM COUP THAT LED TO MR JOBS LEAVING THE COMPANY MR JOBS IS FOUNDER AND CHIEF EXECUTIVE OF NEXT COMPUTER INC UNDER MR SCULLEY APPLE'S SALES ULTIMATELY ROCKETED TO THEIR CURRENT LEVEL OF ABOUT 8 BILLION A YEAR THE SALES GROWTH LARGELY REFLECTED MR SCULLEY'S ABILITY TO PUSH APPLE'S FLAGSHIP MACINTOSH PRODUCTS INTO NEW MARKETS AMONG OTHER COUPS JOHN HAD A UNIQUE ABILITY TO ARTICULATE A VISION OF WHAT NEW AVENUES APPLE COULD EXPLORE SAID JEAN LOUIS GASSEE A FORMER APPLE EXECUTIVE AND EARLY ON UNLIKE IN SOME OTHER ERAS IN APPLE HISTORY JOHN HAD AN IMPORTANT ABILITY TO LOOK REASONABLY WELLBALANCED AND BUSINESSLIKE TO THE FINANCIAL COMMUNITY YET MR SCULLEY'S RECORD AT APPLE IS DECIDEDLY MIXED PARTICULARLY IN RECENT TIMES FOR ONE THING APPLE'S STOCK HAS LANGUISHED IT WAS 20 A SHARE ADJUSTED FOR A STOCK SPLIT WHEN HE ARRIVED IN 1983 AND ABOUT 9 A SHARE WHEN HE TOOK CONTROL FROM MR JOBS IN NATIONAL OVERTHECOUNTER TRADING FRIDAY THE STOCK SOARED 450 TO 2825 APPARENTLY REFLECTING BETTERTHANEXPECTED EARNINGS FOR THE FISCAL FOURTH QUARTER BY COMPARISON RIVAL MICROSOFT CORP WHOSE WINDOWS SOFTWARE DOMINATES THE MARKET HAS SEEN ITS STOCK RISE MANY FOLD JUST SINCE 1986 IN RECENT MONTHS APPLE HAS BEEN BADLY WOUNDED BY THE PC INDUSTRY'S PRICE WARS TO WHICH MR SCULLEY WAS SLOW TO RESPOND AND THE NEWTON A HANDHELD COMPUTER MR SCULLEY PERSONALLY HAD CHAMPIONED THAT WAS INTRODUCED IN JULY HAS BEEN RIDICULED BECAUSE OF PROBLEMS IN ITS HANDWRITINGRECOGNITION SOFTWARE INDEED MANY COMPUTER PUNDITS SUGGEST MR SCULLEY BECAME TOO ENCHANTED WITH THE FUTURE OF TECHNOLOGY TO MANAGE APPLE IN THE HEREANDNOW MR SCULLEY SPENT MUCH TIME PONDERING NOTIONS AS CONVERGENCE INTERACTIVITY AND THE INFORMATION HIGHWAY HE MAY HAVE BEEN AHEAD OF HIS TIME BUT APPLE HAS YET TO BENEFIT FROM SUCH VISIONS MR SCULLEY SPENT MUCH OF LAST FALL HOBNOBBING WITH POLITICIANS INCLUDING BILL CLINTON AT A TIME WHEN APPLE WAS GETTING KILLED IN THE MARKETPLACE BECAUSE OF PRICE CUTTING HE JUST STRETCHED HIMSELF TOO THIN SAID TIM BAJARIN AN ANALYST WITH CREATIVE STRATEGIES INC SANTA CLARA CALIF STILL MR SCULLEY IS GIVEN HIGH MARKS FOR POPULARIZING TECHNOLOGY HE REALLY HELPED DEVELOP THE PUBLIC'S VISION OF COMPUTING AS BEING SOMETHING BEYOND NERDS WITH KEYBOARDS SAID MITCHELL KAPOR FOUNDER OF LOTUS DEVELOPMENT CORP WHAT'S NEXT FOR MR SCULLEY HE'S BEEN CONSIDERED FOR ALMOST EVERY BIG CORPORATE JOB THAT HAS COME OPEN LATELY INCLUDING THE TOP POSTS AT INTERNATIONAL BUSINESS MACHINES CORP AND EASTMAN KODAK CO BUT SEVERAL FRIENDS SAID THEY DON'T ENVISION MR SCULLEY HEADING ANOTHER BIG COMPANY RIGHT NOW JOHN SEEMS TO ME TO BE MORE INTERESTED IN FINDING AN OPPORTUNITY TO BUILD A BUSINESS SAID MR KAPOR WHO HAD LUNCH WITH MR SCULLEY TWO WEEKS AGO HE'S DONE THE BIG COMPANY THING MR SCULLEY IS SUCCEEDED AS CHAIRMAN BY AC MIKE MARKKULA 51 AN APPLE COFOUNDER WHO HAD BEEN VICE CHAIRMAN MR MARKKULA HELD SOME OF THE POSITIONS THAT MR SCULLEY TOOK OVER WHEN MR SCULLEY FIRST ARRIVED AT APPLE 9310180088 931018 LEISURE & ARTS BOOKSHELF VOICES FROM THE NEW BLACK VANGUARD' BY MATTHEW REES WHEN CLARENCE THOMAS WAS NOMINATED FOR A POSITION ON THE SUPREME COURT TWO YEARS AGO IT WAS REMARKABLE FOR MANY REASONS HIS AGE HIS UPFROMPOVERTY STORY AND YES THE INTERSECTION OF HIS RACE AND IDEOLOGY THESE FACTORS LED MR THOMAS TO BE TREATED LIKE A SCIENTIFIC SPECIMEN CONSTANTLY HELD UP FOR SCRUTINY BECAUSE OF HIS CONTRARIAN VIEWS THAT TREATMENT SHOULD NOT HAVE COME AS A SURPRISE THE THOMAS NOMINATION WAS THE FIRST TIME A POLITICALLY CONSERVATIVE BLACK AMERICAN HAD BEEN IN THE NATIONAL SPOTLIGHT SINCE BOOKER T WASHINGTON ROUGHLY A CENTURY AGO WHILE THE BLACK CONSERVATIVE TRADITION CONTINUED AFTER WASHINGTON'S DEATH IN 1915 ITS PROMINENCE WANED AS THE INFLUENCE OF WEB DU BOIS AND MARTIN LUTHER KING GREW BUT WASHINGTON'S LEGACY LIVES ON AND IS LIKELY TO GAIN ADHERENTS AS THE RECOGNITION OF THE LIMITS OF GOVERNMENT POWER TO CORRECT SOCIETAL ILLS INCREASES WERE HE STILL AROUND WASHINGTON WOULD LIKELY HAVE A GREAT DEAL OF PRAISE FOR A NEW BOOK PROFILING THOSE WHO HELP KEEP HIS PHILOSOPHY ALIVE CHALLENGING THE CIVIL RIGHTS ESTABLISHMENT PROFILES OF A NEW BLACK VANGUARD PRAEGER 240 PAGES 2295 BY JOSEPH G CONTI AND BRAD STETSON IS A HIGHLY READABLE SURVEY OF TODAY'S BLACK CONSERVATISM IT MAKES GREAT PROGRESS IN HELPING TO UNDERSTAND THIS MOSTLY UNDOCUMENTED TRADITION WHILE ALSO KNOCKING DOWN MANY MYTHS BEGINNING WITH A LOOK AT THE CONTEMPORARY STATE OF BLACK AMERICA AND THE NATIONAL BLACK LEADERSHIP THE AUTHORS DELINEATE SEVEN GENERAL THEMES THAT CAN BE FOUND IN MODERN BLACK CONSERVATIVE THOUGHT THESE THEMES RANGE FROM A REJECTION OF WHITE GUILT OVER AMERICA'S RACIAL HISTORY AND THE RACIALLY PREFERENTIAL POLICIES THAT ACCOMPANY THIS GUILT TO AN AGREEMENT ON THE NEED FOR RACENEUTRAL STRATEGIES TO COMBAT POVERTY SUCH AS WELFARE REFORM AND BUSINESS DEVELOPMENT THIS BOOK WITH ITS CALM DELIVERY OF THESE THEMES AND OCCASIONAL REFERENCES TO EXISTENTIALISM AND KANT SOMETIMES READS MORE LIKE A PHD DISSERTATION THAN A GENERALINTEREST WORK THAT IS A SMALL QUIBBLE HOWEVER WITH AN OTHERWISE WELLWRITTEN WELLDOCUMENTED BOOK THAT EFFECTIVELY ILLUSTRATES WHY TODAY'S CIVIL RIGHTS LEADERS ARE NO LONGER SEEN AS A SOURCE OF MORAL AUTHORITY IT IS THE CONTENTION OF THE AUTHORS THAT THOSE SEGMENTS OF THE CIVIL RIGHTS ESTABLISHMENT DEVOTED TO BLACK ADVANCEMENTGROUPS WE OFTEN TERM MAINSTREAM OR CONVENTIONAL BLACK ADVOCATESHAVE TRANSFORMED THEIR GOALS AND METHODS SO DRASTICALLY THAT THEIR WORK NOW HAS A NEGATIVE EFFECT ON THEIR PUTATIVE BENEFICIARIES THROUGH LENGTHY PROFILES OF SHELBY STEELE THOMAS SOWELL GLENN LOURY AND ROBERT WOODSON THE READER IS GIVEN A FIRM EXPLANATION OF WHAT DRIVES BLACK CONSERVATISM MR WOODSON FOR EXAMPLE WAS ACTIVE IN THE CIVIL RIGHTS MOVEMENT AND ONLY TURNED AWAY FROM IT WHEN THE LEADERSHIP EMBRACED A STRATEGY OF INTEGRATION AND BUSING HE SAYS PROUDLY THAT I DIDN'T FIGHT FOR INTEGRATION I FOUGHT AGAINST SEGREGATION SIMILARLY MR WOODSON BECAME DISILLUSIONED WHEN WORKING WITH WHAT HE CALLS THE POVERTY PENTAGON THOSE PEOPLE AND INSTITUTIONS WHOSE LIVELIHOODS ARE PREDICATED ON KEEPING PEOPLE POOR AS THE AUTHORS MAKE CLEAR THIS IS A THEME THAT RUNS THROUGHOUT THE THINKING EMBRACED BY MOST BLACK CONSERVATIVES A DISILLUSIONMENT WITH GOVERNMENT INTERVENTION INTO THE LIVES OF BLACK AMERICANS BUT IF THESE IDEAS MAKE SO MUCH SENSE ONE MIGHT ASK WHY DO BLACKS CONTINUE TO SUPPORT DEMOCRATIC CANDIDATES WHO REPRESENT OPPOSING VIEWS THE AUTHORS ARGUE THAT THERE IS A MYSTIQUE ABOUT THE CIVIL RIGHTS ESTABLISHMENT WHICH IS BASED ON SELFINTEREST INTIMIDATION AND RELIGION THAT LULLS BLACKS INTO COMPLACENCY AND AN UNWILLINGNESS TO CHALLENGE THE STATUS QUO I'D SAY THEY'RE ABOUT RIGHT ON ALL THREE FRONTS THOUGH A FOURTH FACTOR IS THE FAILURE OF REPUBLICANS AND CONSERVATIVES TO OFFER CONSTRUCTIVE ALTERNATIVES TO EXISTING POLICIES ONE ILLUSTRATION OF THE INTIMIDATION COMES FROM A 1981 STATEMENT BY HOLIERTHANTHOU BLACK JOURNALIST CARL ROWAN VIDKUN QUISLING IN HIS COLLABORATION WITH THE NAZIS SURELY DID NOT DO AS MUCH DAMAGE TO THE NORWEGIANS AS SOWELL IS DOING TO THE MOST HELPLESS OF BLACK AMERICANS THE WORST THING ABOUT SUCH INVECTIVE WHICH IS AIMED AT BLACK CONSERVATIVES ON A REGULAR BASIS IS NOT SO MUCH THE VITRIOL BUT THE UNWILLINGNESS EVEN TO CONSIDER A DIFFERENT WAY OF THINKING ABOUT RACIAL ISSUES THE RECENT ATTEMPT TO PURGE GARY FRANKS A REPUBLICAN CONGRESSMAN FROM THE OTHERWISE ALLDEMOCRAT CONGRESSIONAL BLACK CAUCUS SPEAKS WELL TO THIS POINT SO MESSRS CONTI AND STETSON HAVE DONE YEOMAN'S WORK IN CAPTURING A FEW PROMINENT VOICES OF BLACK DISSENT THEIR BOOK WILL DO MUCH TO EXPAND THE RANGE OF DISCUSSION ABOUT AMERICA'S RACIAL DILEMMA MR REES IS A JOURNAL EDITORIAL WRITER 9310180086 931018 SECURITIES OFFERING CALENDAR THE FOLLOWING US TREASURY CORPORATE AND MUNICIPAL OFFERINGS ARE TENTATIVELY SCHEDULED FOR SALE THIS WEEK ACCORDING TO DOW JONES CAPITAL MARKETS REPORT AGRICULTURE MINERALS & CHEMICALS 175 MILLION OF 10YEAR SENIOR NOTES VIA MORGAN STANLEY & CO AMERICAN COLLOID CO 22 MILLION SHARES VIA DEAN WITTER REYNOLDS INC AQUILA GAS PIPELINE CORP INITIAL 54 MILLION SHARES VIA DONALDSON LUFKIN & JENRETTE SECURITIES CORP BLACK HILLS CORP 525000 SHARES VIA MERRILL LYNCH & CO CMI INDUSTRIES INC 100 MILLION OF SENIOR SUBORDINATED NOTES VIA MERRILL LYNCH CLUB CAR INC INITIAL 41 MILLION SHARES VIA DONALDSON LUFKIN & JENRETTE COMMERCIAL NET LEASE REALTY INC 3250000 SHARES VIA LEGG MASON WOOD WALKER INC COR THERAPEUTICS INC 3 MILLION SHARES VIA ROBERTSON STEPHENS & CO COUSINS PROPERTIES INC 55 MILLION SHARES VIA MERRILL LYNCH DSC COMMUNICATIONS CORP 25 MILLION SHARES VIA GOLDMAN SACHS & CO ENERSIS SA INITIAL 3080000 MILLION OF AMERICAN DEPOSITORY RECEIPTS VIA BEAR STEARNS & CO ENSYS ENVIRONMENTAL PRODUCTS INC INITIAL 18 MILLION SHARES VIA ALEX BROWN & SONS INC AND FIRST ANALYSIS SECURITIES CORP HARRIS CHEMICAL N AMERICA INC 555 MILLION TWOTRANCHE OFFERING VIA CHASE SECURITIES INC HERZFELD CARIBBEAN BASIN FUND INITIAL 2 MILLION SHARES VIA THOMAS HERZFELD & CO HORIZON HEALTHCARE CORP 5 MILLION SHARES VIA MERRILL LYNCH & CO INSITE VISION INC INITIAL 3 MILLION SHARES VIA MORGAN STANLEY INTEGRATED DEVICE TECHNOLOGY INC 3 MILLION SHARES VIA MONTGOMERY SECURITIES IWERKS ENTERTAINMENT INC INITIAL 24 MILLION SHARES VIA ROBERTSON STEPHENS & CO JERSEY CENTRAL POWER & LIGHT CO 150 MILLION OF 32YEAR FIRST MORTGAGE BONDS VIA COMPETITIVE BID KENDALL INTERNATIONAL INC 29 MILLION SHARES VIA MERRILL LYNCH LANDS' END INC 13 MILLION SHARES VIA WILLIAM BLAIR & CO MAXUS ENERGY CORP 150 MILLION OF 10YEAR NOTES VIA CS FIRST BOSTON MEGATEST CORP 12 MILLION SHARES VIA ROBERTSON STEPHENS OMI CORP 150 MILLION OF 10YEAR SENIOR NOTES VIA GOLDMAN SACHS PATHMARK STORES INC 545 MILLION TWOTRANCHE OFFERING PHYSICIANS CORPORATION OF AMERICA 4 MILLION SHARES VIA BEAR STEARNS SOUTHERN ENERGY HOMES INC 1540000 SHARES VIA MONTGOMERY MASSACHUSETTS 200 MILLION OF 1993 CONSOLIDATED LOAN SERIES B GENERAL OBLIGATION BONDS VIA COMPETITIVE BID CHICAGO 639 MILLION OF 1993 SERIES AIRPORT REVENUE REFUNDING BONDS FOR O'HARE INTERNATIONAL AIRPORT VIA A GOLDMAN SACHS GROUP DETROIT 200 MILLION OF WATER SUPPLY SYSTEM REVENUE REFUNDING BONDS VIA A GOLDMAN SACHS GROUP NEW YORK STATE ENERGY RESEARCH & DEVELOPMENT AUTHORITY 100 MILLION OF REVENUE BONDS FOR THE CON EDISON CO NEW YORK VIA A GOLDMAN SACHS GROUP SAN JOAQUIN COUNTY CALIF 109 MILLION OF CERTIFICATES OF PARTICIPATION VIA A BEAR STEARNS GROUP SONOMA COUNTY CALIF 975 MILLION OF SERIES 1993 PENSION OBLIGATION BONDS VIA A BANK OF AMERICA NT GROUP WISCONSIN 210 MILLION OF GENERAL OBLIGATION REFUNDING BONDS VIA A BEAR STEARNS GROUP 9310180085 931018 LAW JUDGE IN DENNY BEATING CASE ASKS DEADLOCKED JURY TO RETURN TO COURT BY BENJAMIN A HOLDEN STAFF REPORTER OF THE WALL STREET JOURNAL LOS ANGELES THE MIX OF VERDICTS AND DEADLOCKS REACHED SATURDAY BY THE JURY IN THE REGINALD DENNY BEATING CASE RAISES THE POSSIBILITY OF YET ANOTHER RACIALLY CHARGED TRIAL HERE AS THIS CITY STRUGGLES TO MOVE BEYOND THREE HIGHPROFILE CASES THAT HAVE FRAYED RACE RELATIONS IN AN APPARENT ATTEMPT TO AVOID THAT RESULT STATE COURT JUDGE JOHN W OUDERKIRK TOLD THE JURY DEADLOCKED ON THE CHARGE OF ATTEMPTED PREMEDITATED MURDER AGAINST DEFENDANT DAMIAN WILLIAMS TO RETURN TO COURT TODAY TO RETHINK ITS VIEW THAT FURTHER DELIBERATIONS WOULD BE USELESS THE MOST HIGHLY PUBLICIZED CHARGES ATTEMPTED MURDER AND AGGRAVATED MAYHEM BOTH CARRY POSSIBLE LIFE TERMS IT IS THESE CHARGES THAT HAVE BEEN THE FOCUS OF SOME IN THE BLACK COMMUNITY WHO SAY THE DISTRICT ATTORNEY'S OFFICE IS MAKING THE DEFENDANTS SCAPEGOATS FOR THE RIOTS HERE LAST YEAR THAT TOOK 53 LIVES COST THE CITY 1 BILLION IN PROPERTY DAMAGE AND TARNISHED THE CITY'S IMAGE INTERNATIONALLY IF JURORS REMAIN DEADLOCKED TODAY JUDGE OUDERKIRK COULD ACCEPT AND READ THE VERDICTS AT THAT TIME ALTHOUGH HE HAS HINTED HE INTENDS TO HOLD THEM UNTIL TOMORROW ASSUMING DEADLOCK ON THE MURDER CHARGE DISTRICT ATTORNEY GIL GARCETTI WILL FACE A TOUGH POLITICAL CHOICE OF WHETHER TO REPROSECUTE THE CASE OR ACCEPT POSSIBLE CONVICTIONS AGAINST MR WILLIAMS ON LESSER CHARGES AS SUFFICIENT PUNISHMENT FOR WHAT MANY HERE CONSIDER A BRUTAL BEATING MR GARCETTI COULDN'T BE REACHED FOR COMMENT BUT A DEPUTY DISTRICT ATTORNEY FAMILIAR WITH THE DENNY CASE SAID THE OFFICE HAS SPENT MORE THAN 1 MILLION ON THE TRIAL THE DEPUTY DA WHO IS BARRED FROM BEING QUOTED BY THE PRESS UNDER AN OFFICEWIDE POLICY SAID THE OFFICE WOULD BE HESITANT TO PUT THE COMMUNITY THROUGH THE COST AND ANGUISH OF A RETRIAL MEANWHILE LT JOHN DUNKIN A POLICE SPOKESMAN SAID LOCAL OFFICERS HAVE CANVASSED RESIDENTS AND TENTATIVELY CONCLUDED THE CITY IS UNLIKELY TO ERUPT NO MATTER WHAT THE VERDICTS IN SUM THE DENNY JURY REACHED FIVE VERDICTS AGAINST HENRY KEITH WATSON AND COULDN'T AGREE ON ONE CHARGE THEY REACHED VERDICTS ON FIVE OF 10 COUNTS AGAINST MR WILLIAMS THE TRIAL INVOLVED 12 COUNTS MOSTLY FOR ROBBERY AND ASSAULT AGAINST EIGHT VICTIMS PLUS VARIOUS SPECIAL ALLEGATIONS THE JURY REACHED A VERDICT AGAINST MR WILLIAMS ON THE CHARGE OF AGGRAVATED MAYHEM ARISING OUT OF HIS ALLEGED HURLING OF A BRICK AT MR DENNY'S HEAD BUT HIS LAWYER SAID JURORS' FAILURE TO REACH A VERDICT ON A SPECIAL SENTENCEENHANCING ALLEGATION IN THIS INSTANCE USE OF A DEADLY WEAPON MEANS MR WILLIAMS HAS PROBABLY BEEN FOUND NOT GUILTY OF AGGRAVATED MAYHEM A SPECIAL ALLEGATION CAN BE MADE ONLY TO THE CHARGE OF SIMPLE MAYHEM NOT AGGRAVATED MAYHEM ON THE CHARGE OF ATTEMPTED PREMEDITATED MURDER AGAINST MR WATSON THE JURY ALSO REACHED A VERDICT LEADING HIS LAWYERS TO SPECULATE THAT WATSON MR WILLIAMS'S ALLEGED ACCOMPLICE HAS BEEN ACQUITTED OF ATTEMPTED MURDER MR WATSON'S LAWYERS SAY A JURY IS UNLIKELY TO CONVICT AN ACCOMPLICE WITHOUT FIRST CONVICTING THE PRINCIPAL A MAN PROSECUTORS SAY IS MR WATSON IS SHOWN IN THE VIDEOTAPED BEATING OF MR DENNY HOLDING DOWN THE TRUCKER'S HEAD WITH HIS FOOT AS VARIOUS ASSAILANTS MILL AROUND AS CURRENTLY COMPRISED THE TENWOMAN TWOMAN JURY IS MADE UP OF FOUR BLACKS FOUR HISPANICS TWO WHITES AND TWO ASIANS WITH ONE WHITE FEMALE ALTERNATE 9310180084 931018 ABREAST OF THE MARKET MERGER MANIA MAY SIGNAL BEGINNING OF SPECULATIVE SPREE HALTING BULL RUN BY ANITA RAGHAVAN AND SARA CALIAN STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK THIS MAY BE THE BEGINNING OF THE END THE MERGER EUPHORIA THAT PUSHED THE NASDAQ COMPOSITE INDEX UP 3 TO FIVE STRAIGHT HIGHS LAST WEEK COULD SIGNAL THE START OF A SPECULATIVE SPREE THAT ALTHOUGH LIKELY TO LAST MONTHS COULD END WITH THE UNRAVELING OF THE LATEST BULL MARKET STOCK STRATEGISTS WARN I'VE SEEN THESE CYCLES BEFORE SAYS WAYNE NORDBERG A PARTNER AT LORD ABBETT WHICH MANAGES 65 BILLION IN STOCKS AND I KNOW WHAT THE FATAL SIGNS ARE ALTHOUGH THE LARGE AND MIDSIZE STOCKS THAT COMPRISE MUCH OF THE NASDAQ COMPOSITE INDEX HAVE BEEN ON A RAMPAGE ALL MONTH THE BULL RUN ACCELERATED LAST WEEK WHEN BELL ATLANTIC CORP SAID THAT IT PLANS TO ACQUIRE TELECOMMUNICATIONS INC IN WHAT IS LIKELY TO BE THE LARGEST MEDIA MERGER IN HISTORY THOUGH MOST ANALYSTS DON'T THINK THE BULLS ARE IN ANY IMMEDIATE DANGER MAINLY BECAUSE LOW INTEREST RATES MAKE STOCKS A COMPELLING INVESTMENT THEY SAY THE SEEDS OF A ROUT MAY BE SOWN IF INVESTORS CONTINUE TO CHASE FRANTICALLY AFTER STOCKS AS THEY WERE DOING LAST WEEK WHILE SOME ANALYSTS ARGUE THAT THE FUNDAMENTALS OF THE STOCK MARKET REMAIN SOUND MR NORDBERG SAYS SPECULATIVE MANIAS CAN ALWAYS BE JUSTIFIED BY FUNDAMENTALS AT LEAST UNTIL THE MARKET TAKES A TUMBLE THERE'S ALWAYS A REASON FOR THE RALLY SAYS MR NORDBERG WHETHER IT'S RATIONAL OR NOT WE FIND OUT LATER MR NORDBERG RECALLS THAT IN THE LATE '70S WHEN OIL PRICES WERE HITTING 40 A BARREL INVESTORS FLOCKED TO BUY ENERGY EXPLORATION STOCKS BETTING THAT THEY WOULD PROSPER AS OIL PRICES HEADED HIGHER PEOPLE GOT THE MAGNITUDE RIGHT BUT THEY GOT THE DIRECTION WRONG SAYS MR NORDBERG BY 1986 OIL PRICES HAD FALLEN BELOW 10 A BARREL TODAY MR NORDBERG SAYS INVESTORS ARE FLEEING BIG STOCKS AND EMBRACING MIDCAP AND SMALLCAP STOCKS ON THE ASSUMPTION THAT THEY WILL FARE BETTER IN A SLUGGISH ECONOMY BUT MR NORDBERG WARNS THAT IF THE ECONOMY SLOWS DOWN MIDCAP AND SMALLCAP STOCKS WILL ALSO GET HURT PERHAPS NOT AT FIRST BUT CERTAINLY EVENTUALLY AND WHEN THE CRUNCH COMES IT WILL BE INVESTORS WHO HAVE BLINDLY BID THESE STOCKS UP TO STRATOSPHERIC LEVELS WHO TAKE A BATH OTHER ANALYSTS LOOKING AT THE SAME MARKET FEVER AREN'T SO CONVINCED THE END IS NEAR ALTHOUGH THEY CONCEDE THAT THE ATMOSPHERE IS GETTING A LITTLE THIN AT THESE HEIGHTS SPECULATION IS DRIVEN BY SENTIMENT SAYS GAIL DUDACK STOCK STRATEGIST AT SG WARBURG WHO IS STILL BULLISH ON STOCKS AND THE MERGERS ARE CHANGING THE SENTIMENT IN THE MARKET MS DUDACK SAYS THAT FOR MOST OF THIS YEAR INVESTORS HAVE BEEN DOWNRIGHT GLUM ABOUT THE PROSPECTS FOR HEADY STOCKPRICE GAINS THAT PESSIMISM HAS KEPT THE STOCK MARKET AT REASONABLE LEVELS BUT IN THE LAST WEEK THE GLOOM SEEMS TO HAVE LIFTED FOR THE FIRST TIME SINCE NOVEMBER 1992 SG WARBURG'S SPECULATIVE INDEX WHICH MEASURES MARKET SENTIMENT ROSE ABOVE THE WORRISOME 15 MARK TO 177 WE'VE HAD THIS READING FOR ONLY A FEW DAYS SO IT'S TOO EARLY TO TELL WHAT IT MEANS SAYS MS DUDACK BUT THE FACT THAT IT COMES AFTER A VERY SUBSTANTIAL MOVE IN THE NASDAQ WHICH APPEARS TO BE ACCELERATING LEADS ME TO BELIEVE THAT I SHOULD LOOK OUT FOR OTHER NEGATIVE SIGNALS WHILE MS DUDACK THINKS THE NEWFOUND EUPHORIA IS LIKELY TO PROPEL STOCK PRICES TO NEW HIGHS SHE FEARS THAT THE UNBRIDLED ENTHUSIASM FOR STOCKS COULD PAVE THE WAY FOR AN EVENTUAL REVERSAL IN THE MARKET BEFORE THAT OCCURS HOWEVER MS DUDACK SAYS HER SPECULATIVE INDEX WOULD HAVE TO GENERATE A PERSISTENTLY HIGH READING AND OTHER TECHNICAL INDICATORS WOULD HAVE TO DETERIORATE OTHER ANALYSTS WHO FOLLOW MIDCAP AND SMALLCAP STOCKS ARE CONVINCED THAT THERE IS NO DANGER IN THE RECENT RUNUP IN THE NASDAQ COMPOSITE INDEX WITH THE MERGER BETWEEN BELL ATLANTIC AND TELECOMMUNICATIONS AT THE FORE AND THE UNION BETWEEN AMERICAN TELEPHONE & TELEGRAPH AND MCCAW CELLULAR IN THE OFFING INVESTORS ARE QUITE LOGICALLY BETTING THAT OTHER SMALL COMPANIES WILL BE LIKELY TARGETS OF STRATEGIC ACQUISITIONS IN THE COMING MONTHS ALL THE MERGER ACTIVITY COULD POTENTIALLY TRIGGER MORE EVENTS LIKE THIS SAYS MARY FARRELL A MARKET STRATEGIST AT PAINEWEBBER MS FARRELL SAYS A POWERFUL FUNDAMENTAL CASE CAN BE MADE FOR SMALL AND MIDSIZE STOCKS BECAUSE THESE COMPANIES ARE CHURNING OUT BETTER PROFITS THAN BIG COMPANIES NOW WITH MERGERS ON THE HORIZON THERE ARE EVEN MORE COMPELLING REASONS TO OWN SELECTIVE MIDSIZE AND SMALLSIZE STOCKS SHE SAYS AND WHILE TELECOMMUNICATIONS STOCKS HAVE STOLEN THE LIMELIGHT FROM TECHNOLOGY STOCKS RECENTLY ANALYSTS SAY THE TECH STOCKS ARE POISED TO REGAIN THEIR PREEMINENCE A FACTOR THAT SHOULD GIVE ADDED FIREPOWER TO THE RALLY TECHNOLOGY STOCKS ARE JUST BEGINNING THEIR SHINING PERIOD SAYS CLAUDIA MOTT MARKET STRATEGIST AT PRUDENTIAL SECURITIES THE FOURTH QUARTER IS THEIR BEST TIME OF THE YEAR AND THAT COULD SUPPORT THE MARKET FURTHER IN ADDITION THE NASDAQ COMPOSITE INDEX SHOULD CONTINUE TO RECEIVE THE SOLID BACKING OF FINANCIAL STOCKS WHICH HAVE BEEN RISING STEADILY THIS YEAR MS MOTT SAYS FINANCIALS HAVE HAD PHENOMENAL EARNINGS MOMENTUM AND THERE HAVEN'T BEEN ANY WARNING SIGNS THAT IT ISN'T ON TRACK FOR THE THIRD QUARTER SAYS MS MOTT STOCKS CLIMBED WITH SOME MARKET BAROMETERS HITTING NEW HIGHS ON THE HEELS OF A SURPRISINGLY TAME REPORT ON INFLATION THE DOW JONES INDUSTRIAL AVERAGE ROSE 810 POINTS TO 362973 IN HEAVY TRADING STANDARD & POOR'S 500STOCK INDEX SURGED 267 TO 46950 ITS SECOND STRAIGHT RECORD THE NASDAQ COMPOSITE INDEX GAINED 201 TO 78742 ITS FIFTH CONSECUTIVE HIGH AND THE AMERICAN STOCK EXCHANGE'S MARKET VALUE INDEX ADDED 158 TO 48323 ALSO A NEW HIGH VOLUME ON THE BIG BOARD SWELLED TO 3588 MILLION SHARES ECLIPSING THURSDAY AS THE SECOND BUSIEST DAY THIS YEAR ADVANCING ISSUES OUTPACED DECLINERS 1200 TO 808 FOR THE WEEK THE DOW INDUSTRIALS ROSE 13 THE S&P 2 AND THE NASDAQ COMPOSITE INDEX 3 STOCKS STARTED ON A FIRM NOTE AFTER A SUBDUED REPORT ON CONSUMER PRICES PAVED THE WAY FOR A SHARP DECLINE IN INTEREST RATES THE LABOR DEPARTMENT REPORT WHICH SHOWED THAT CONSUMER PRICES WERE UNCHANGED LAST MONTH SENT THE YIELD ON THE TREASURY'S 30YEAR BOND TUMBLING TO 579 THE LOWEST LEVEL SINCE 1977 WHEN THE GOVERNMENT BEGAN REGULAR AUCTIONS OF 30YEAR BONDS KELLOGG JUMPED 3 1/4 TO 56 THE CEREAL COMPANY SURPASSED ANALYSTS' EXPECTATIONS BY REPORTING THAT THIRDQUARTER PROFITS GREW TO 90 CENTS A SHARE FROM 84 CENTS A SHARE A YEAR AGO OTHER CONSUMER STOCKS ALSO FLOURISHED PHILIP MORRIS ADDED 5/8 TO 53 PROCTER & GAMBLE 3/4 TO 53 SARA LEE 1 5/8 TO 28 AND CPC INTERNATIONAL 3/4 TO 48 TECHNOLOGY STOCKS WERE AMONG THE STRONGEST PERFORMERS AFTER TEXAS INSTRUMENTS REPORTED PROFITS SOARED TO 154 A SHARE IN THE THIRD QUARTER FROM 58 CENTS A SHARE A YEAR AGO TEXAS INSTRUMENTS RALLIED 2 7/8 TO 65 7/8 INTERNATIONAL BUSINESS MACHINES 1 7/8 TO 44 1/2 COMPAQ COMPUTER 3/4 TO 61 5/8 AND HEWLETTPACKARD 1 3/4 TO 70 1/8 APPLE COMPUTER SURGED 4 1/2 TO 28 1/4 ON NASDAQ THE CUPERTINO CALIF COMPUTER MAKER BENEFITING FROM COST CONTROLS AND A PRICEDRIVEN SURGE REPORTED A 27 MILLION PROFIT OR TWO CENTS A SHARE FOR ITS FISCAL FOURTH QUARTER SLIGHTLY BETTER THAN SOME ANALYSTS EXPECTED THE COMPANY ALSO SAID THAT JOHN SCULLEY HAS RESIGNED AS CHAIRMAN OF THE BOARD AC MIKE MARKKULA WAS ELECTED AS THE COMPANY'S NEW CHAIRMAN NAVISTAR INTERNATIONAL WAS THE MOST ACTIVE STOCK ON THE BIG BOARD RISING 1 1/8 TO 23 THE COMPANY OFFERED 22 MILLION COMMON SHARES TO INVESTORS AT 21875 EACH 9310180083 931018 SKYBOX INTERNATIONAL STRUGGLES TO REACH HEIGHT OF APPRAISAL FOLLOWING SPINOFF BY DAVE KANSAS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK HAVING BEEN SPUN OFF BY ITS PARENT COMPANY BROOKE GROUP LTD SKYBOX INTERNATIONAL INC IS STILL STRUGGLING TO MEET EXPECTATIONS AT LEAST IN THE EYES OF INVESTORS SKYBOX A PRODUCER AND DISTRIBUTOR OF SPORTS AND ENTERTAINMENT TRADING CARDS REPORTED STRONG EARNINGS FOR ITS THIRD QUARTER BUT ITS STOCK CONTINUES TO TRADE BELOW ITS APPRAISED VALUE RECENTLY AS PART OF THE SPINOFF SKYBOX WAS APPRAISED AT 14375 A SHARE DESPITE THE LOFTY APPRAISAL SKYBOX ADMITS IT DOESN'T MEET QUALIFICATIONS FOR LISTING ON A MAJOR EXCHANGE MOREOVER AN ADMITTED NET WORTH OF ZERO HAS HURT THE COMPANY'S EFFORTS TO SEEK A LISTING ON A MAJOR EXCHANGE THE COMPANY SAYS IT IS SEEKING A WAIVER FOR INCLUSION ON NASDAQ'S NATIONAL MARKET SYSTEM MEANWHILE THE COMPANY'S SHARES HAVE BEEN TRADING IN THE NETHER REACHES OF THE OVERTHECOUNTER BULLETIN BOARD MARKET EVEN IN THAT ARENA THOUGH THE SHARES HAVE PERFORMED NICELY AFTER STARTING BELOW 4 A SHARE LAST WEEK SKYBOX WAS TRADING AROUND 7 A SHARE FRIDAY BUT THE SHARE PRICE REMAINS WELL BELOW THE COMPANY'S APPRAISED VALUE THE PROBLEM IS THAT THE INFORMATION ISN'T OUT SAID BENNETT S LEBOW CHAIRMAN OF BOTH SKYBOX AND BROOKE GROUP PEOPLE DON'T KNOW ABOUT IT YET THUS FAR INVESTORS' MAIN SOURCE OF INFORMATION HAS BEEN THE COMPANY'S MAMMOTH FILING WITH THE SECURITIES AND EXCHANGE COMMISSION THAT EXPLAINED THE SPINOFF MR LEBOW SAID THE FILING DIDN'T REFLECT THE INHERENT VALUE OF SKYBOX MORE INFORMATION SURFACED THURSDAY WITH THE COMPANY'S THIRDQUARTER EARNINGS FOR THE QUARTER THE COMPANY REPORTED NET INCOME OF 72 MILLION OR 78 CENTS A SHARE ON REVENUE OF 254 MILLION MR LEBOW SAID THE EARNINGS REFLECT NO TAX PAYMENTS DUE TO PREVIOUS LOSSES THAT HAVE BEEN CARRIED FORWARD IN THE YEAREARLIER QUARTER SKYBOX THEN A UNIT OF BROOKE GROUP HAD A LOSS OF 49 MILLION OR 70 CENTS A SHARE ON REVENUE OF 147 MILLION BROOKE GROUP WHICH OWNS TOBACCO AND REALESTATE OPERATIONS SPUN SKYBOX OFF TO REDUCE NEARLY 50 MILLION IN LIABILITIES TO CERTAIN INVESTORS IN 1990 MR LEBOW ISSUED CONTINGENT VALUE RIGHTS TO SHAREHOLDERS AS PART OF A MERGER THE RIGHTS ESSENTIALLY GUARANTEED THAT BROOKE GROUP'S STOCK WOULD BE TRADING AT MORE THAN 19 A SHARE IN NOVEMBER OR BROOKE GROUP WOULD PAY THE RIGHTS HOLDERS THE DIFFERENCE BETWEEN THE SHARE PRICE AND THE TARGET PRICE WITH BROOKE GROUP SHARES HOVERING AROUND 5 THE CASHSTARVED COMPANY BROOKE GROUP HAS AN ADMITTED NEGATIVE NET WORTH OF MORE THAN 500 MILLION FACED A CONSIDERABLE LIABILITY BUT A CLAUSE IN THE RIGHTS AGREEMENT ALLOWS THE GROUP TO SUBTRACT DIVIDEND PAYMENTS FROM THE TARGET PRICE INCIDENTALLY THE APPRAISED VALUE OF THE SKYBOX SPINOFF TREATED LIKE A DIVIDEND PAYMENT ERASED NEARLY THE ENTIRE LIABILITY SKYBOX CONTINUES TO BE CONTROLLED BY BROOKE GROUP THROUGH PREFERREDSTOCK HOLDINGS SKYBOX DURHAM NC HAS PLACED ITSELF IN SOME STRONG MARKETS WHILE BASEBALL TRADING CARDS REMAIN SOMEWHAT SOFT BASKETBALL TRADING CARDS CONTINUE TO SHOW STRENGTH STILL COMPETITION IN THE SPORTS ARENA IS LIKELY TO REMAIN INTENSE SKYBOX SAID THAT SUITS IT NICELY BECAUSE IT HAS ABOUT A 6040 SPLIT IN ITS BUSINESS BETWEEN ENTERTAINMENT AND SPORTS RESPECTIVELY THE COMPANY ALSO EXPANDED ITS LICENSING EFFORTS IN COMICS ADDING BATMAN CARDS TO ITS OTHER COMIC CHARACTERS SKYBOX ALSO FOUND SUCCESS IN MARKETING CARDS ASSOCIATED WITH TELEVISION PROGRAMS AND MOVIES ITS BETTERSELLING ISSUES HAVE COME FROM STAR TREK AND WALT DISNEY CO MOVIES SUCH AS ALADDIN SKYBOX ALSO ACQUIRED NEW LICENSING AGREEMENTS WITH HARLEYDAVIDSON INC AND ADDED MORE LICENSES FROM DISNEY'S LINE OF ANIMATED PRODUCTS SKYBOX EXECUTIVES ALSO SAID THEY INTEND TO EXPAND DISTRIBUTION HOPING TO TAP INTO MORE VIDEOSTORE OUTLETS AND NEWSPAPER AND PERIODICAL STORES WE'RE EXPANDING OUR DISTRIBUTION BASE INTO NEW ACCOUNTS AND LOOK FORWARD TO INTERNATIONAL MARKETS SAID FRANK O'CONNELL SKYBOX CHIEF EXECUTIVE OFFICER ONE CONCERN RAISED IN ITS FILING WAS THE ANTICIPATED LOSS OF A CONTRACT WITH MARVEL ENTERTAINMENT GROUP INC'S MARVEL COMICS THE COMPANY SAID MARVELLICENSED CARDS MADE UP A SMALL PERCENTAGE OF THIRDQUARTER SALES IN ADDITION THE COMPANY SAID IT EXPECTS THE MARVEL AGREEMENT WHICH ACCOUNTED FOR 24 OF ITS CARD BUSINESS LAST YEAR TO BE REPLACED BY OTHER AGREEMENTS 9310180082 931018 MARKETING & MEDIA CHEVY CHASE SHOW' IS OFF FOX'S LATENIGHT AIRWAVES NEW YORK THE LATENIGHT TALK SHOW WARS OF FALL 1993 CLAIMED THEIR FIRST VICTIM AS FOX BROADCASTING CO CANCELED THE CHEVY CHASE SHOW THE COMEDIAN'S LAST SHOW AIRED FRIDAY A MERE SIX WEEKS AFTER HE DEBUTED TO A CRITICAL DRUBBING ALTHOUGH THE 11 PM EST SHOW'S RATINGS STARTED OUT HIGH DRAWING 43 OF THE NATION'S TV HOMES THEY QUICKLY SANK TO 21 IN THE WEEK OF OCT 4 THE LAST RATINGS AVAILABLE FOX HAD GUARANTEED ADVERTISERS THE SHOW WOULD DRAW 45 INSTEAD IT WAS RUNNING FOURTH TO HEAVY COMPETITION FROM CBS INC'S LATE SHOW WITH DAVID LETTERMAN CAPITAL CITIES/ABC INC'S NIGHTLINE AND THE TONIGHT SHOW WITH JAY LENO WHICH AIRS ON GENERAL ELECTRIC CO'S NBC LAST WEEK FOX BROADCASTING CHAIRMAN LUCIE SALHANY SAID THE NETWORK WOULD STAND BY THE SHOW IN AN INTERVIEW YESTERDAY SHE SAID THAT DESPITE CREATIVE CHANGES AND A FEELING THAT MR CHASE WAS GETTING MORE COMFORTABLE IN HIS ROLE VIEWERS WEREN'T RESPONDING AND FOX WAS FACING A BIG BIG UPHILL BATTLE SHE DECLINED TO ESTIMATE HOW MUCH THE SHOW COST THE NETWORK MS SALHANY SAID FOX A UNIT OF NEWS CORP INTENDS TO HANG ONTO THE ONEHOUR TIME SLOT FOR THE NETWORK IN A STATEMENT MR CHASE WHO WILL RETURN TO FILMACTING SAID MY HAT IS OFF TO THOSE GUYS WHO DO THIS KIND OF WORK 9310180081 931018 FINANCING BUSINESS ABITIBIPRICE INC ABITIBIPRICE INC SAID IT ISSUED TO A GROUP OF US INSURANCE COMPANIES 200 MILLION IN 12YEAR NOTES WITH ANNUAL INTEREST OF 792 PAYABLE SEMIANNUALLY THE TORONTO FORESTPRODUCTS COMPANY SAID IT WILL USE THE PROCEEDS TO RETIRE DEBENTURES AND FOR GENERAL CORPORATE PURPOSES 9310180080 931018 ALYESKA FAULTED OVER OPERATION OF OIL PIPELINE REVIEW OF ALASKA ALLIANCE SAID TO SUPPORT CLAIMS OF SAFETY DEFICIENCIES BY CHARLES MCCOY STAFF REPORTER OF THE WALL STREET JOURNAL A NEW STUDY ORDERED BY THE INTERIOR DEPARTMENT CONFIRMS POTENTIALLY DANGEROUS FLAWS IN THE OIL INDUSTRY'S OPERATION OF THE TRANSALASKA PIPELINE ACCORDING TO GOVERNMENT AND CONGRESSIONAL OFFICIALS THE STUDY IS A REBUKE TO ALYESKA PIPELINE SERVICE CO AND ITS OWNERS WHICH INCLUDE EXXON CORP BRITISH PETROLEUM LTD AND ATLANTIC RICHFIELD CO ALYESKA OPERATES THE PIPELINE WHICH TRANSPORTS A QUARTER OF THE OIL USED IN THE US EACH YEAR AND THE TANKER LOADING TERMINAL AT VALDEZ ALASKA MOREOVER THE FEDERAL GOVERNMENT IS LIKELY TO USE THE REPORT TO FORCE CHANGES IN THE OIL INDUSTRY'S ALASKA OPERATIONS WHICH COULD COST TENS OF MILLIONS OF DOLLARS AT LEAST THAT WOULD ADD TO PRESSURE FROM THE ENVIRONMENTAL PROTECTION AGENCY WHICH SAYS IT MAY SOON REQUIRE ADDITIONAL AIRPOLLUTION CONTROLS AT ALYESKA'S TANKER LOADING TERMINAL THAT COULD COST THE CONSORTIUM AND ITS OWNERS MORE THAN 100 MILLION THE COMPANY IN THE PAST HAS CONSISTENTLY DENIED HAVING ANY SIGNIFICANT SAFETY OR ENVIRONMENTAL PROBLEMS THE NEW PIPELINE STUDY WAS CONDUCTED OVER THE PAST TWO MONTHS BY A TEAM LED BY OWEN THERO A SYSTEMS ENGINEER AND FORMER NUCLEARINDUSTRY WATCHDOG AT THE REQUEST OF THE INTERIOR DEPARTMENT'S BUREAU OF LAND MANAGEMENT IT IS THE FIRST INDEPENDENT REVIEW BY EXPERTS NOT WORKING FOR THE OIL INDUSTRY THE THERO TEAM'S REPORT IS SCHEDULED TO BE RELEASED NOV 1 DETAILS OF THE STUDY WEREN'T AVAILABLE CONGRESSIONAL AND GOVERNMENT OFFICIALS FAMILIAR WITH THE FINDINGS SAY IT FOCUSED ON ALYESKA'S MANAGEMENT OF VARIOUS SAFETY SYSTEMS QUALITYCONTROL PROGRAMS MAINTAINANCE AND ENVIRONMENTAL OPERATIONS THESE OFFICIALS SAY THE REVIEW FINDS MANY OF THE PROGRAMS SERIOUSLY INADEQUATE POORLY ORGANIZED POORLY UNDERSTOOD BY WORKERS AND MANAGERS AND IN SOME CASES NONEXISTENT THE OFFICIALS SAID ONE SPECIFIC AREA WHERE MR THERO'S TEAM FOUND PROBLEMS IS ALYESKA'S CORROSION MONITORING PROGRAM THAT COULD FUEL CONCERNS OVER THE STRUCTURAL INTEGRITY OF THE PIPELINE ALYESKA ACKNOWLEDGES FINDING CORROSION IN SEVERAL AREAS ALONG THE PIPELINE BUT MAINTAINS IT DOESN'T POSE A THREAT TO PIPELINE OPERATIONS SIMILAR ISSUES HAVE BEEN AT THE HEART OF A RUNNING BATTLE ALYESKA AND ITS OWNERS HAVE BEEN FIGHTING WITH WHISTLEBLOWERS REGULATORS CONGRESS AND OTHER CRITICS IN JULY CONGRESS HELD HEARINGS AT WHICH NUMEROUS FORMER ALYESKA EMPLOYEES ALLEGED SAFETY AND ENVIROMENTAL VIOLATIONS ALONG THE PIPELINE IN ADDITION THOSE WHISTLEBLOWERS ALLEGED THAT ALYESKA HARASSED OR FIRED THEM FOR VOICING THEIR CONCERNS THE COMPANY RECENTLY SETTLED FIVE WHISTLEBLOWER COMPLAINTS FILED WITH THE LABOR DEPARTMENT AFTER THE AGENCY RULED IN ONE OF THE CASES THAT ALYESKA HAD ILLEGALLY FIRED A SAFETY INSPECTOR A CONGRESSIONAL INVESTIGATOR WHO HAS BEEN BRIEFED ON THE THERO TEAM'S STUDY SAID IT TENDS TO SUPPORT EVERYTHING DISTURBING THAT WE'VE HEARD ABOUT ALYESKA DAVID PRITCHARD ALYESKA'S CHIEF EXECUTIVE OFFICER IS SCHEDULED TO MEET TODAY WITH REPRESENTATIVES OF EXXON AND THE OTHER OIL COMPANIES THAT CONTROL ALYESKA TO DISCUSS THE THERO TEAM'S FINDINGS AN ALYESKA SPOKESWOMAN SAID LATE FRIDAY THAT THE CONSORTIUM WOULDN'T COMMENT UNTIL IT SEES THE FINAL THERO REPORT MR THERO DECLINED TO COMMENT AS DID INTERIOR DEPARTMENT OFFICIALS THE REPORT IS LIKELY TO GIVE ALYESKA'S CRITICS MORE AMMUNITION REP JOHN DINGELL D MICH WHOSE INVESTIGATION AND OVERSIGHT SUBCOMMITTEE HAS BEEN PROBING ALYESKA FOR ALLEGED HARASSMENT OF WHISTLEBLOWERS AND OTHER PROBLEMS WILL SOON ANNOUNCE THAT HE'LL HOLD HEARINGS ON THE THERO REPORT AROUND NOV 10 GOVERNMENT OFFICIALS ARE ALSO LOOKING TO THE REPORT AS A LEVER JEFF ZABLER THE INTERIOR DEPARTMENT'S SPECIAL REPRESENTATIVE ON PIPELINE MATTERS NOTED THAT THE OIL COMPANIES RECENTLY HIRED ARTHUR D LITTLE CO THE CONSULTING FIRM TO DO A 6 MILLION STUDY OF THE PIPELINE WHILE DECLINING TO DISCUSS THE THERO REPORT MR ZABLER SAID WE HAVE GREAT CONFIDENCE IN THE THERO TEAM WE ARE NOT GOING TO GET INTO ANOTHER GAME OF DUELING EXPERTS WITH ALYESKA THOSE DAYS ARE PAST HE SAID 9310180079 931018 COMPUTER FIRMS EXPECTED TO POST MIXED RESULTS ANALYSTS ANTICIPATE GAINS FOR COMPAQ HEWLETT LOSSES AT IBM DIGITAL BY JOHN R WILKE STAFF REPORTER OF THE WALL STREET JOURNAL COMPUTER MAKERS BURDENED BY WEAK SALES IN EUROPE AND AN ACCELERATING SHIFT TO SMALLER MACHINES WITH LOWER PROFIT MARGINS ARE EXPECTED TO POST WIDELY VARYING RESULTS FOR THEIR LATEST QUARTERS ANALYSTS ARE EXPECTING INTERNATIONAL BUSINESS MACHINES CORP AND DIGITAL EQUIPMENT CORP TO REPORT QUARTERLY LOSSES ON FLAT SALES DIGITAL REPORTS WEDNESDAY AND IBM ON OCT 26 HEWLETTPACKARD CO BY CONTRAST IS EXPECTED TO POST SHARPLY HIGHER SALES AND PROFIT BUT WAS ALSO AFFECTED BY SLOWNESS OVERSEAS IT WILL REPORT IN MIDNOVEMBER COMPAQ COMPUTER CORP WHICH ALSO REPORTS WEDNESDAY WILL SHOW HUGE GROWTH ANALYSTS SAY WHILE APPLE COMPUTER INC BARELY BROKE EVEN FOR ITS FISCAL FOURTH QUARTER ENDED SEPT 24 DESPITE A STRONG JUMP IN SALES APPLE WHICH REPORTED ITS RESULTS LAST WEEK WAS WIDELY EXPECTED TO POST A LOSS FOR THE PERIOD EACH SIGN OF A POTENTIAL TURN IN THE COMPUTER GROUP SEEMS TO BE OFFSET BY NEW WEAKNESS IN EUROPE SAYS BARRY F WILLMAN AN ANALYST WITH GOLDMAN SACHS & CO THE EXPECTATION EARLIER THIS QUARTER OF A GRADUAL RECOVERY IN EUROPE BASED ON SOME INDICATIONS OF NEW STRENGTH IN THE UNITED KINGDOM SEEMS TO HAVE DISSIPATED AT THE SAME TIME TWO BROADER TRENDS ARE VIOLENTLY RESHAPING THE COMPUTER INDUSTRY THE MAJOR MAINFRAME AND MINICOMPUTER MAKERS ARE SUFFERING DECLINES IN THEIR CORE BUSINESSES AS BUYERS SHIFT TO PERSONAL COMPUTERS MANY PC MAKERS IN TURN ARE BEING SQUEEZED BY INTENSE PRICING PRESSURE DESPITE BOOMING REVENUE GROWTH ANALYSTS SAY JAY P STEVENS OF DEAN WITTER REYNOLDS INC EXPECTS IBM ARMONK NY TO REPORT A NET LOSS OF 174 MILLION OR 30 CENTS A SHARE INCLUDING A SMALL ONETIME TAX BENEFIT ON A 17 REVENUE DECLINE TO 1445 BILLION STEVEN MILUNOVICH OF MORGAN STANLEY & CO IS SOMEWHAT MORE OPTIMISTIC SEEING A PERSHARE LOSS OF 21 CENTS ON A SMALLER DROP IN REVENUE IN THE YEAREARLIER THIRD QUARTER IBM POSTED A LOSS OF 278 BILLION OR 487 A SHARE PLUS RESTRUCTURING CHARGES PROFIT BEFORE CHARGES WAS 15 CENTS A SHARE YEAREARLIER REVENUE WAS 147 BILLION ANALYSTS EXPECT HEWLETTPACKARD CO PALO ALTO CALIF TO REPORT STRONG PROFIT ON EXPLOSIVE SALES GROWTH FOR ITS FISCAL FOURTH QUARTER WHICH ENDS OCT 31 MORGAN STANELY'S MR MILUNOVICH FORECASTS NET OF 297 MILLION OR 117 A SHARE ON A 20 JUMP IN REVENUE TO 52 BILLION TIMOTHY MCCOLLUM OF DEAN WITTER REYNOLDS IS EVEN MORE ENTHUSIASTIC ESTIMATING NET OF 128 A SHARE ON A 24 SALES GAIN TO 54 BILLION IN THE YEAREARLIER PERIOD HEWLETTPACKARD POSTED EARNINGS OF 28 CENTS A SHARE OR 64 CENTS BEFORE A RESTRUCTURING CHARGE ON REVENUE OF 432 BILLION THE COMPANY'S GROWTH HAS BEEN FUELED IN LARGE PART BY LASERPRINTER SALES THOUGH INCREASINGLY BY ITS COMPUTER BUSINESS AS WELL HEWLETTPACKARD WAS ONE OF THE FIRST MAJOR COMPUTER MAKERS TO EMBRACE THE NOWPOPULAR UNIX SOFTWARE STANDARD I LIKE TO CALL THEM THE 7UP OF THE INDUSTRY MR MILUNOVICH SAYS DIGITAL IBM AND EVERYBODY ELSE WAS PEDDLING COLA THEY COULDN'T WIN IN THAT BUSINESS SO THEY TOOK ANOTHER APPROACH BUT MR MILUNOVICH ALSO NOTES THAT PRINTER SALES ARE FINALLY SLOWING TO AROUND 25 ANNUAL GROWTH COMPARED WITH THE 40PLUS IT'S BEEN HE ALSO NOTED A SHARP ORDER DECLINE IN EUROPE IN HEWLETTPACKARD'S FISCAL THIRD QUARTER THE RISK IS EUROPE AND THERE COULD BE SOME GROSSMARGIN DECLINE AS WELL IT WON'T BE EASY BUT THEY SHOULD DO OK DIGITAL AFTER REPORTING ITS FIRST PROFIT IN TWO YEARS IN ITS FISCAL THIRD QUARTER WHICH ENDED JULY 3 IS EXPECTED TO SHOW A LOSS FOR ITS FIRST QUARTER ENDED SEPT 30 MR STEVENS OF DEAN WITTER FORECASTS A 60 MILLION LOSS OR 45 CENTS A SHARE ON A 2 REVENUE DECLINE TO 325 BILLION IN THE YEAREARLIER PERIOD DIGITAL POSTED A LOSS OF 261 MILLION OR 204 A SHARE ON REVENUE OF 331 BILLION DIGITAL MAYNARD MASS HAS MORE EXPOSURE IN EUROPE AS A PERCENTAGE OF TOTAL REVENUE THAN ANY OTHER MAJOR US COMPUTER MAKER A LEGACY OF TWO ACQUISITIONS IT MADE THERE THREE YEARS AGO MARY MEEKER OF MORGAN STANLEY EXPECTS PC MAKER COMPAQ HOUSTON TO REPORT THIRDQUARTER NET OF 84 MILLION OR 101 A SHARE ON A 53 REVENUE GAIN TO 16 BILLION EVEN THOUGH IT'S A SEASONALLY WEAK QUARTER FOR THEM IN THE YEAREARLIER PERIOD NET INCOME WAS 49 MILLION OR 61 CENTS A SHARE ON REVENUE OF 107 BILLION THE YEAREARLIER PERIOD INCLUDED AN 85 MILLION CHARGE RELATED TO A 10 REDUCTION IN ITS WORK FORCE WHICH WAS OFFSET BY AN 86 MILLION PRETAX GAIN FROM THE SALE OF AN INVESTMENT COMPAQ CONTINUES TO GAIN MARKET SHARE THEY HAVE ABOUT 10 OF THE WORLDWIDE MARKET IN UNITS NOW O 15 NEXT YEAR MS MEEKER SAYS ADDING THAT THE COMPANY MIGHT EVEN BE ABLE TO EXCEED HER ESTIMATES FOR THE QUARTER CUPERTINO CALIFBASED APPLE WHICH WAS WIDELY EXPECTED TO SHOW A LOSS FOR ITS FISCAL FOURTH QUARTER SURPRISED ANALYSTS LAST WEEK WITH A 27 MILLION PROFIT OR TWO CENTS A SHARE ON A POWERFUL 21 SURGE IN REVENUE TO 214 BILLION IN THE YEAREARLIER PERIOD NET INCOME WAS 976 MILLION OR 81 CENTS A SHARE ON REVENUE OF 177 BILLION DEMAND WAS EXTRAORDINARILY STRONG WITH UNIT SALES UP A RECORD 36 MS MEEKER SAYS IT MAY SEEM A BIT STRANGE TO GET EXCITED ABOUT A TWOCENT PROFIT BUT IT WAS A PRETTY AMAZING QUARTER 9310180078 931018 TECHNOLOGY MERGER RUMOR IS DENIED WORDPERFECT CORP DENIED THAT IT IS CONSIDERING MERGING WITH BORLAND INTERNATIONAL INC A KEY PARTNER IN THE SOFTWARE BUSINESS RUMORS OF A MERGER BETWEEN THE TWO COMPANIES HAVE SWIRLED SINCE APRIL WHEN THEY BEGAN COLLABORATING TO SELL THEIR PRODUCTS TOGETHER IN PACKAGES KNOWN AS SUITES COMPUTER RESELLER NEWS A TRADE WEEKLY REPORTS IN TODAY'S EDITION THAT WORDPERFECT IS CONSIDERING ACQUIRING OR MERGING WITH BORLAND BUT MARK CALKINS WORDPERFECT'S VICE PRESIDENT OF CORPORATE STRATEGIC MARKETING SAID IN AN INTERVIEW SUNDAY THAT THE COMPANIES ARE NOT IN ANY DISCUSSIONS RELATED TO A MERGER OR ACQUISITION HE ADDED THAT WORDPERFECT OFFICIALS MAY HAVE INFORMALLY DISCUSSED SUCH COMBINATIONS DURING PRODUCTRELATED TALKS WITH BORLAND BUT A MERGER WASN'T ONE OF THE OPTIONS THAT WAS SERIOUSLY CONSIDERED A BORLAND SPOKESMAN SAID NO MERGER DISCUSSIONS ARE UNDER WAY THOUGH HE WOULD NOT COMMENT ON WHETHER ANY HAD TAKEN PLACE IN THE PAST 9310180077 931018 DIVIDEND NEWS RONSON CORP RONSON CORP SOMERSET NJ DECLARED A DIVIDEND OF 21 CENTS A SHARE FOR ITS PREFERRED STOCK PAYABLE OCT 29 TO SHAREHOLDERS OF RECORD OCT 22 THE AEROSPACE CONCERN ALSO SAID IT WOULD PAY DIVIDENDS ON THE PREFERRED STOCK FOR FOUR PERIODS IN ARREARS THE COMPANY SAID IT WOULD PAY DIVIDENDS ON THE 12 CUMULATIVE CONVERTIBLE PREFERRED STOCK FOR THE PERIODS OF APRIL 15 1991 JULY 15 1991 OCT 15 1991 AND JAN 15 1992 AT 525 CENTS A SHARE SINCE ISSUING THE PREFERRED STOCK THE COMPANY HAS PAID CASH DIVIDENDS FOR 15 OF 22 PERIODS 9310180076 931018 BUSINESS BRIEF CANADIAN ELECTIONS WILL ALSO DECIDE FATE OF UNISYS GE DEFENSE CONTRACTS OTTAWA SEVERAL LARGE COMPANIES INCLUDING UNISYS INC AND GENERAL ELECTRIC CO FACE THE LOSS OF BIG CANADIAN DEFENSE CONTRACTS IF THE FRONTRUNNING LIBERAL PARTY WINS THE COUNTRY'S OCT 25 ELECTION THE LIBERALS HAVE PLEDGED TO CANCEL A 48 BILLION CANADIAN DOLLAR US36 BILLION ORDER FOR 43 EH101 HELICOPTERS POWERED BY GE ENGINES AND EQUIPPED WITH ELECTRONIC SYSTEMS FROM A UNISYS SUBSIDIARY PARAMAX SYSTEMS CANADA INC MONTREAL THE POLITICAL PARTY CLAIMS THE HELICOPTER CONTRACT IS AN EXTRAVAGANCE AT A TIME WHEN INTERNATIONAL TENSIONS HAVE EASED CANADA'S CONSERVATIVE GOVERNMENT SIGNED CONTRACTS A YEAR AGO FOR THE EH101S WHICH ARE TO BE USED FOR ANTISUBMARINE PATROLS AND FOR SEARCH AND RESCUE MISSIONS THE TWO MAIN CONTRACTORS ARE PARAMAX AND EH INDUSTRIES LTD JOINTLY OWNED BY WESTLAND GROUP PLC OF BRITAIN AND AGUSTA SPA OF ITALY PARAMAX HAS CONTRACTS FOR THE PROJECT VALUED AT C13 BILLION AND EH INDUSTRIES WHICH DESIGNED THE HELICOPTER HAS CONTRACTS TOTALING C15 BILLION THE CANADIAN ORDERS ARE SEEN BY PARAMAX AND OTHER SUPPLIERS AS A FOOTHOLD IN A POTENTIALLY LARGE WORLDWIDE MARKET FOR THE EH101 A PARAMAX SPOKESMAN SAID THE EH101 ORDER IS THE SPRINGBOARD TO OUR FUTURE PARAMAX EXPECTS TO WIN MORE THAN C2 BILLION OF EXPORT BUSINESS FROM THE HELICOPTER PROGRAM HE SAID EH INDUSTRIES ESTIMATED EVENTUAL WORLDWIDE SALES OF 800 OF THE HELICOPTERS SO FAR 103 HAVE BEEN ORDERED INCLUDING 44 BY BRITAIN'S ROYAL NAVY AND 16 BY ITALY'S ARMED FORCES EH INDUSTRIES HAS AWARDED A GE UNIT GE AIRCRAFT ENGINES CANADA LTD A C108 MILLION ORDER FOR 156 GE GAS TURBINE ENGINES FOR THE EH101S WHICH ARE EACH POWERED BY THREE ENGINES A DEFENSE DEPARTMENT OFFICIAL ESTIMATED THAT IT WOULD COST ALMOST C800 MILLION TO CANCEL THE C48 BILLION PROJECT INCLUDING COMPENSATION TO THE CONTRACTORS PARAMAX HAS SPENT C35 MILLION ON THE PROJECT AND HAS HIRED 300 ENGINEERS TECHNICIANS AND OTHERS TO WORK ON IT IF THE EH101 ORDER IS CANCELED THE GOVERNMENT WOULD HAVE TO REFURBISH ITS 30YEAROLD FLEET OF LABRADOR AND SEA KING HELICOPTERS DEFENSE ANALYSTS SAID BOEING CO SEATTLE PROPOSED IN 1992 TO MODERNIZE CANADA'S LABRADORS AS AN ALTERNATIVE TO BUYING EH101S FOR RESEARCH AND RESCUE WORK OF THE 43 EH101S CANADA HAS ORDERED 15 WILL BE USED FOR SEARCH AND RESCUE 9310180075 931018 CREDIT MARKETS JUNK FUNDS SWEEP IN NEW MONEY SMALL INVESTORS RUSH TO BE PART OF ACTION AS TREASURYS RALLY BY LAURA JERESKI STAFF REPORTER OF THE WALL STREET JOURNAL A TIDAL WAVE OF NEW MONEY FLOODED INTO JUNKBOND MUTUAL FUNDS LAST WEEK AS THE HIGHYIELD JUNK MARKET CAUGHT UP WITH THE HUGE RALLY IN TREASURY BONDS LONGTERM TREASURYBOND YIELDS SLID TO ANOTHER LOW OF 579 LAST WEEK OFF FROM 592 A WEEK BEFORE BUT THE MOST HECTIC ACTION WAS IN THE JUNK MARKET AS YIELDHUNGRY SMALL INVESTORS ENDED THEIR RECENT RETREAT AND SCRAMBLED TO GET BACK INTO MUTUAL FUNDS HOLDING BONDS THAT YIELD 10 OR MORE JUNK FUNDS PULLED IN A RECORD 775 MILLION IN THE WEEK THROUGH WEDNESDAY ACCORDING TO AMG DATA SERVICES IN ARCATA CALIF WHICH TRACKS FUND INFLOWS OVER A TWOWEEK PERIOD A TOTAL OF 874 MILLION HAS SWEPT INTO JUNK FUNDS MORE THAN OVERCOMING SEPTEMBER'S MONTHLONG TIDE OF WITHDRAWALS THE SWINGS IN INVESTOR SENTIMENT ARE LARGER THAN EVER BEFORE SAYS MARTIN S FRIDSON WHO HEADS HIGHYIELD RESEARCH FOR MERRILL LYNCH & CO AND THERE'S NO FUNDAMENTAL REASON YOU CAN POINT TO MARKET WATCHERS ARE INCREASINGLY CONCERNED ABOUT THE FICKLENESS OF MUTUALFUND INVESTORS WHO CAN WITHDRAW MONEY EASILY ONLY TO SWING BACK INTO THE FUNDS IN FACT THE PAST WEEK'S INFLOW IS ALMOST TWICE THE PREVIOUS WEEKLY JUNKFUND RECORD OF 410 MILLION EXPERIENCED LAST NOVEMBER AFTER AN EQUALLY FRANTIC FLIGHT FROM JUNKBOND FUNDS FUND MANAGERS AND ANALYSTS SAY MORE MONEY IS MOVING IN AND OUT OF THE FUNDS FASTER ON EVERSMALLER CHANGES IN BOND PRICES THERE ARE A LOT MORE TIMERS AND MOMENTUM PLAYERS OUT THERE THAN WE THOUGHT MR FRIDSON SAYS THESE CAPRICIOUS INVESTORS ARE STARTING TO GIVE PORTFOLIO MANAGERS WHIPLASH UNRELENTING WITHDRAWALS IN SEPTEMBER FORCED MANY MANAGERS TO DUMP JUNK BONDS JUST AS PRICES WERE SAGGING IN ORDER TO MEET REDEMPTIONS BY MUTUALFUND SHAREHOLDERS INVESTORS' MOOD SWINGS COME AT A COST JUNKFUND RETURNS SAGGED TO 025 DURING SEPTEMBER INDICATING A DROP IN NET ASSET VALUE OF HALF A PERCENTAGE POINT PARTLY OFFSET BY INCOME TOTAL RETURNS ON JUNKBOND FUNDS AVERAGE 1328 FOR THE YEAR TO DATE ACCORDING TO MORNINGSTAR INC THAT'S LURING INVESTORS WHO FEAR THEY'VE BEEN LEFT OUT OF THE HUGE RALLY IN THE TREASURY MARKET AND NOW WANT TO CATCH UP BY DIVING INTO HIGHERYIELDING BOND FUNDS MUCH OF THE CASH POURING BACK IN IS COMING FROM THE SAME MARKETTIMERS WHO PROMPTED THE EXODUS SAY ANALYSTS AND FUND MANAGERS DENVER INVESTMENT ADVISER ROBERT E JONES FOR EXAMPLE HAD WITHDRAWN 2 MILLION OF HIS CLIENTS' MONEY FROM JUNK FUNDS IN AUGUST AND SEPTEMBER NOW HE HAS PUT MOST OF IT BACK IN SUCH FICKLENESS FRUSTRATES MANAGERS WHO NOW HAVE TO SCRAMBLE TO BUY BACK BONDS NO SOONER DID I COMPLETE MY PROGRAM TO RAISE CASH THAN MONEY STARTED COMING BACK IN COMPLAINS RONALD SPAULDING WHO MANAGES THE DIMINUTIVE SAFECO HIGHYIELD MUTUAL FUND WITH 33 MILLION IN ASSETS THE 38 MILLION INVESTORS ADDED TO THE FUND THIS WEEK PUSHED HIS CASH POSITION TO AROUND 20 MR SPAULDING SAYS THIS IS A PROBLEM FOR A SMALL FUND LIKE THIS WADS OF NEW MONEY ARE NO LESS A PROBLEM FOR GIANT JUNK FUNDS KEMPER'S 22 BILLION HIGHYIELD FUND TOOK IN MORE THAN 200 MILLION IN THE WEEK AND PUTNAM'S HIGH YIELD TRUST IS AWASH IN ABOUT 100 MILLION OF FRESH FUNDS I DON'T THINK THE INTERESTS OF INVESTORS ARE BEING SERVED BY SO MUCH INANDOUT ACTIVITY ON SUCH A SHORTTERM BASIS SAYS MR FRIDSON OF MERRILL IT'S HARD TO BELIEVE THAT ANYONE PROFITS FUND MANAGERS ARE FORCED TO BUY BACK BONDS JUST AS PRICES ARE SOARING THE NEW MONEY CAME IN WHILE THE JUNKBOND MARKET WAS EXPERIENCING ONE OF ITS BEST WEEKS EVER JUNKBOND FUNDS' HOLDINGS ROSE MORE THAN 300 MILLION IN VALUE AS BOND PRICES ROSE ACROSS THE BOARD THE BIG WINNERS WERE CABLE BONDS SPURRED BY BELL ATLANTIC CORP'S STUNNING OFFER FOR TELECOMMUNICATIONS INC THE 9 1/4 BONDS DUE IN 2008 OF CABLEVISION INDUSTRIES CORP THOUGHT BY MANY TO BE AN ACQUISITION CANDIDATE ROSE NEARLY NINE POINTS OR 85 FOR EACH 1000 BOND IN THE WEEK TO CLOSE AT 100 1/4 ADELPHIA COMMUNICATIONS CORP'S 11 7/8 SENIOR BONDS DUE IN 2004 SHOT UP FIVE POINTS TO 109 OTHER JUNKBOND ISSUES RALLIED TOO ALTHOUGH THE PRICE INCREASE WASN'T AS STRIKING AMERICAN STANDARD INC 11 3/8 BONDS DUE IN 2004 ROSE TWO POINTS TO 110 1/4 WHILE FORT HOWARD CORP'S BROADLY HELD 10 BONDS DUE IN 2003 ROSE NEARLY TWO POINTS TO CLOSE AT 102 1/2 TREASURY PRICES ENDED THE WEEK ON A HIGH NOTE THANKS TO A REPORT SHOWING THAT INFLATION REMAINED SUBDUED IN SEPTEMBER ON FRIDAY THE GOVERNMENT REPORTED THAT CONSUMER PRICES EXCLUDING VOLATILE FOOD AND ENERGY SECTORS ROSE BY 01 IN SEPTEMBER SO FAR THIS YEAR THEY'VE RISEN AT A 3 ANNUAL RATE COMPARED WITH 33 IN 1992 ECONOMISTS SURVEYED BY DOW JONES CAPITAL MARKETS REPORT EXPECTED ON AVERAGE A RISE OF 02 IN THIS MEASURE BOND INVESTORS FEAR INFLATION BECAUSE IT REDUCES THE VALUE OF INVESTMENTS WITH A FIXED RATE OF RETURN THE PRICE OF THE 30YEAR TREASURY BOND LEAPED 7/8 POINT OR 875 FOR A BOND WITH 1000 FACE VALUE TO 106 13/32 THE YIELD WHICH MOVES IN THE OPPOSITE DIRECTION OF THE PRICE DROPPED TO 579 THE LOWEST SINCE THE TREASURY BEGAN REGULAR AUCTIONS OF THE 30YEAR BOND IN 1977 THE 30YEAR BOND AS NOT REGULARLY AUCTIONED BY THE TREASURY BEFORE 1977 AND WAS NOT ALWAYS NONCALLABLE AS IT IS TODAY FOR THIS REASON THE 10YEAR NOTE IS A BETTER REFERENCE FOR HISTORICAL TRENDS IN LONGTERM INTEREST RATES BEFORE 1977 ON FRIDAY FOR EXAMPLE THE YIELD OF THE 10YEAR NOTE DROPPED TO 517 THE LOWEST SINCE JULY OF 1967 THE PRICE ROSE MORE THAN 1/4 POINT TO 104 10/32 IT'S EUPHORIA IT'S INSANE BUT IT'S EUPHORIA SAID JIM FITZGIBBON CHIEF MARKET STRATEGIST AT TOKAI BANK MR FITZGIBBON ARGUED THAT THE POSITIVE INFLATIONARY NEWS THAT PUSHED PRICES HIGHER WAS LONGKNOWN TO THE MARKET WHAT'S MORE HE SAID THE ENTHUSIASTIC REACTION OF INVESTORS SHOWS THAT THEY ARE IGNORING SIGNS OF REAL ECONOMIC GROWTH EVIDENT IN SEVERAL OTHER ECONOMIC REPORTS SUCH DATA POINT TO SUBSTANTIAL SYSTEMIC GROWTH SAID MR FITZGIBBON MEANWHILE AN OFFICIAL AT MERRILL LYNCH & CO CONFIRMED FRIDAY THAT THE FIRM ALONG WITH SALOMON BROTHERS INC AND BANCO RIO DE LA PLATA WOULD BE LEAD MANAGERS OF THE REPUBLIC OF ARGENTINA'S FIRST GLOBAL BOND OFFERING BANCO RIO DE LA PLATA IS ARGENTINA'S LARGEST PRIVATE COMMERCIAL BANK THE COUNTRY IS EXPECTED TO ISSUE THE BONDS LATE THIS YEAR OR EARLY IN 1994 MARKET SOURCES SAID THE DEAL WILL BE AT LEAST 500 MILLION AND SOME ANALYSTS THINK IT COULD HIT 1 BILLION GLOBAL BONDS ARE SECURITIES DESIGNED TO BE EASILY TRADED IN ASIA NORTH AMERICA AND EUROPE SINCE THE WORLD BANK SOLD THE FIRST ONE IN 1989 GLOBAL BONDS HAVE TENDED TO BE DENOMINATED IN DOLLARS AND TO COME FROM INVESTMENTGRADE ISSUERS IN AMOUNTS OF AT LEAST 1 BILLION THE ARGENTINA OFFERING WILL BE THE FIRST GLOBAL TO COME WITH A JUNKBOND RATING ARGENTINA IS RATED SINGLEB1 BY MOODY'S INVESTORS SERVICE INC AND DOUBLEBMINUS BY STANDARD & POOR'S CORP THE OFFERING IS A SIGN OF THE WILLINGNESS OF INVESTORS WORLDWIDE AND ESPECIALLY IN THE US TO TAKE ON GREATER RISKS IN RETURN FOR HIGHER YIELDS BECAUSE OF ITS LOW CREDIT RATINGS THE ARGENTINA BONDS ARE LIKELY TO OFFER YIELDS MUCH HIGHER THAN THOSE OF US TREASURYS WITH COMPARABLE MATURITIES THOMAS T VOGEL JR AND JACQUELINE DOHERTY CONTRIBUTED TO THIS ARTICLE 9310180074 931018 SOCIAL SECURITY RECIPIENTS TO GET AN INCREASE OF 26 WASHINGTON SOCIAL SECURITY RECIPIENTS WILL GET A 26 COSTOFLIVING INCREASE IN JANUARY THE SECONDSMALLEST INCREASE SINCE CONGRESS BEGAN THE ANNUAL ADJUSTMENTS IN 1975 THE INCREASE BASED ON THE RISE IN THE CONSUMER PRICE INDEX FOR URBAN WAGE EARNERS DURING THE 12 MONTHS ENDED IN SEPTEMBER WILL MEAN 17 MORE EACH MONTH FOR THE AVERAGE RECIPIENT BOOSTING THE TYPICAL BENEFIT TO 674 THE SOCIAL SECURITY ADMINISTRATION SAID THE AGENCY ALSO SAID THE 62 SOCIAL SECURITY PAYROLL TAX WILL BE BASED ON THE FIRST 60600 OF EARNINGS NEXT YEAR UP FROM 57600 THIS YEAR THERE WILL BE NO CEILING ON EARNINGS SUBJECT TO THE 145 TAX THAT FINANCES MEDICARE 9310180073 931018 BUSINESS BRIEF MAN AG FIRSTQUARTER ORDERS ROSE BUT LITTLE STRENGTH IS SEEN GERMAN MACHINERY AND TRUCK MANUFACTURER MAN AG SAID ORDERS IN THE FIRST QUARTER OF THE FISCAL YEAR WHICH BEGAN JULY 1 SHOWED NO SIGN OF AN ECONOMIC RECOVERY MAN SAID THAT ALTHOUGH FIRSTQUARTER ORDERS TOTALED 37 BILLION MARKS 229 BILLION 12 MORE THAN IN THE VERY WEAK YEAREARLIER PERIOD DOMESTIC ORDERS REMAINED LOW THE COMPANY CONFIRMED ITS AUGUST REPORT THAT FISCAL 1993 PROFIT HAD FALLEN 45 TO 230 MILLION MARKS 1426 MILLION FROM 418 MILLION MARKS A YEAR EARLIER AND THAT IT WAS RECOMMENDING A SHARPLY LOWER DIVIDEND OF 850 MARKS 527 PER SHARE FROM 12 MARKS A YEAR EARLIER THE DIVIDEND RECOMMENDATION MUST BE APPROVED BY SHAREHOLDERS AT THEIR DEC 16 ANNUAL GENERAL MEETING 9310180072 931018 GM UNION STILL FAR APART STRIKE DEADLINE ISN'T SET DETROIT GENERAL MOTORS CORP AND THE UNITED AUTO WORKERS UNION REMAINED FAR APART ON ISSUES HOLDING UP A NEW CONTRACT FOR MORE THAN 200000 HOURLY WORKERS RAISING THE QUESTION OF WHEN THE UNION WILL SET A STRIKE DEADLINE AS OF LAST NIGHT THE UNION HADN'T SET A DEADLINE FOR GM TO SETTLE OR RISK A STRIKE SOME COMPANY OFFICIALS ARE PUZZLED BY THE UNION'S FORBEARANCE RECKONING THAT IT WILL TAKE THE PRESSURE OF A DEADLINE TO PRODUCE A DEAL ACCEPTABLE IN UNION HALLS AND ON WALL STREET UAW AND GM NEGOTIATORS STILL HADN'T AGREED ON A FORMULA FOR CONTINUING PAYMENTS TO LAIDOFF WORKERS GM WHICH SPENT 335 BILLION PAYING ALMOST FULL WAGES TO IDLED WORKERS DURING THE PAST THREE YEARS WANTS MORE FREEDOM TO MOVE PEOPLE WHOSE JOBS HAVE DISAPPEARED TO OTHER FACTORIES ONCE THAT ISSUE IS RESOLVED THE TWO SIDES ARE EXPECTED TO MOVE ON TO THE EQUALLY THORNY ISSUE OF PENSIONS SEPARATELY THE UAW AND FORD MOTOR CO RESOLVED A LASTMINUTE SNAG OVER TWO NEW HOLIDAYS THAT HAD HELD UP FORMAL SIGNING OF THEIR NEW THREEYEAR PACT MEANWHILE PRODUCTION WORKERS AT CHRYSLER CORP RATIFIED A NEW THREEYEAR PACT BY AN ALMOST 3TO1 MARGIN 9310180071 931018 CORPORATE FOCUS CAREMARK PROBE FOCUSES ON TRANSACTIONS IN MINNESOTA FEDERAL INVESTIGATORS LOOK INTO ALLEGED KICKBACKS AT UNIVERSITY HOSPITAL BY THOMAS M BURTON STAFF REPORTER OF THE WALL STREET JOURNAL CHICAGO A TWOYEAROLD FEDERAL CRIMINAL INVESTIGATION OF CAREMARK INTERNATIONAL INC THE NATION'S LEADING HOMEHEALTH CONCERN HAS INTENSIFIED AND IS FOCUSING IN PART ON ITS DEALINGS WITH THE UNIVERSITY OF MINNESOTA HOSPITAL FEDERAL CRIMINAL INVESTIGATORS ARE SCRUTINIZING WHETHER THE NORTHBROOK ILL COMPANY PAID KICKBACKS TO GENERATE BUSINESS AT THE MINNEAPOLIS INSTITUTION CAREMARK OF MINNESOTA A JOINT VENTURE OF THE COMPANY AND A CORPORATION SET UP BY DOCTORS AT THE HOSPITAL HAS ADMINISTERED TUBEFED LIQUID NUTRITION AND INTRAVENOUS ANTIBIOTICS TO THOUSANDS OF PATIENTS AT THEIR HOMES IN RECENT YEARS AT ISSUE IS WHETHER THE FINANCIAL STRUCTURE OF CAREMARK OF MINNESOTA IS SIMPLY A ROUNDABOUT WAY FOR CAREMARK INTERNATIONAL TO PAY KICKBACKS TO THE HOSPITAL OR CERTAIN DOCTORS THERE FEDERAL LAW PROHIBITS THE PAYMENT OF KICKBACKS TO DOCTORS OR HOSPITALS TO STEER PATIENTS TO HEALTHCARE PROVIDERS LIKE CAREMARK INVESTIGATORS ARE EXAMINING THE AMOUNT OF MONEY CAREMARK INTERNATIONAL PAID INTO THE CAREMARK OF MINNESOTA JOINT VENTURE THE HOSPITAL DECLINED TO DISCLOSE THAT AMOUNT OR THE REVENUES COLLECTED BY CAREMARK OF MINNESOTA HOWEVER A DOCUMENT FILED WITH THE INTERNAL REVENUE SERVICE SHOWS CAREMARK OF MINNESOTA PAID 15 MILLION LAST YEAR TO PHYSICIAN MANAGED CARE THE CORPORATION SET UP BY DOCTORS AT THE HOSPITAL THE CORPORATION'S LAWYER SAID THIS AMOUNT REPRESENTS A PERCENTAGE OF THE JOINT VENTURE'S PROFITS THE MONEY THEN GOES NOT TO INDIVIDUAL DOCTORS ACCORDING TO A WRITTEN HOSPITAL STATEMENT PREPARED FOR THIS NEWSPAPER BUT INTO UNIVERSITY ACCOUNTS EXCLUSIVELY FOR RESEARCH AND EDUCATION ACTIVITIES THE HOSPITAL AND CAREMARK SAID THE JOINT VENTURE ISN'T AN ILLEGALKICKBACK SCHEME BUT RATHER AN EXPERIMENT TO PROVIDE BETTER DOCTOR SUPERVISION OVER THERAPY AND NUTRITION PROVIDED IN PATIENTS' HOMES THE HOSPITAL STATEMENT SAID THE PAYMENTS THE HOSPITAL RECEIVES AREN'T TIED TO PATIENT REFERRALS WE HAVE ALWAYS MADE AND CONTINUE TO MAKE EVERY EFFORT TO SEE THAT ANY CAREMARK ARRANGEMENT INVOLVING PHYSICIANS AND OTHER HEALTHCARE PROVIDERS COMPLIES WITH ALL APPLICABLE LAWS SAID LES JACOBSON A CAREMARK SPOKESMAN WHO ALSO ASSERTS THAT FEDERAL LAW IN THIS COMPLEX AREA HAS BEEN VAGUE AND UNCERTAIN THE PRESIDENT OF PHYSICIAN MANAGED CARE IS DR FRANK B CERRA WHO ALSO IS A DIRECTOR OF THE JOINT VENTURE WITH CAREMARK ACCORDING TO THE LAWYER FOR BOTH ENTITIES DR CERRA A STAFF SURGEON WITH EXPERTISE IN INTENSIVE CARE AND NUTRITION REFERRED ALL QUESTIONS TO THE HOSPITAL'S PUBLICRELATIONS OFFICIALS ANOTHER KEY PARTICIPANT HAS BEEN RANDALL S MOORE WHO PRACTICED INTERNAL MEDICINE AT THE UNIVERSITY OF MINNESOTA THEN BECAME AN EXECUTIVE AT CAREMARK WHILE SERVING AS A CAREMARK VICE PRESIDENT AND MEDICAL DIRECTOR OF ITS HOMEINFUSION SERVICES AFTER OCTOBER 1991 DR MOORE MAINTAINED CLINICAL PRIVILEGES AT THE UNIVERSITY OF MINNESOTA AND CONTINUED TO SEE PATIENTS THERE ON A PARTTIME BASIS UNTIL EARLY THIS YEAR DR MOORE SAID HE AND CAREMARK WOULD WELCOME THE OPPORTUNITY TO ANSWER FEDERAL INVESTIGATORS' QUESTIONS I STILL THINK THIS THE JOINT VENTURE WILL BE THE MODEL FOR MANAGED COMPETITION IN THE FUTURE HE SAID THE JOINT VENTURE OPERATES AS A KIND OF SEPARATE DEPARTMENT WITHIN THE HOSPITAL ACCORDING TO DR MOORE ITS AREA OF SPECIALIZATION IS TREATMENT OF A WIDE RANGE OF PATIENTS WHO NEED INHOME TUBE FEEDING OR INTRAVENOUS THERAPY TUBE FEEDING IS ADMINISTERED FOR VARIOUS REASONS INCLUDING POSTSURGERY INABILITY TO USE THE DIGESTIVE TRACT OTHER PATIENTS TREATED UNDER THE CAREMARK OF MINNESOTA JOINT VENTURE RANGE FROM CANCER PATIENTS TO CHILDREN WITH INADEQUATE DIGESTIVE TRACTS PATIENTS UNDER THE PROGRAM ARE TREATED BY CAREMARK NURSES AND EMPLOYEES OF THE UNIVERSITY OF MINNESOTA HOSPITAL DR MOORE SAYS PAYMENTS FOR SUCH THERAPY CAN BE VERY EXPENSIVE SOMETIMES NEARLY 100000 A YEAR ACCORDING TO FEDERAL OFFICIALS WHO HAVE STUDIED THIS FORM OF TREATMENT THE FEDERAL MEDICARE PROGRAM PAYS FOR THE CARE OF OLDER PATIENTS FEDERAL MEDICAID MONEY PAYS FOR LOWERINCOME YOUNGER PEOPLE IT IS THOSE PATIENTS AND THE BILLS FOR THEIR TREATMENT THAT ELICIT THE ATTENTION FROM INVESTIGATORS FROM THE INSPECTOR GENERAL'S OFFICE OF THE US DEPARTMENT OF HEALTH AND HUMAN SERVICES BESIDES CAREMARK THE GOVERNMENT INQUIRY INVOLVES OTHER HOME HEALTHCARE COMPANIES ESPECIALLY PROVIDERS OF HOMEINFUSION THERAPIES AND NUTRITION THE INVESTIGATORS' JOB IS TO ENFORCE A LAW WHOSE PREMISE IS THAT ANY KICKBACKS TO SECURE BUSINESS STYMIE TRUE PRICE COMPETITION AMONG HEALTHCARE PROVIDERS DURING PART OF THE TIME UNDER SCRUTINY CAREMARK WAS A UNIT OF BAXTER INTERNATIONAL INC THE DEERFIELD ILL HOSPITAL SUPPLIER THAT SPUN OFF CAREMARK IN 1992 CAREMARK GENERATES ABOUT 15 BILLION IN ANNUAL REVENUE FROM ITS VARIOUS BUSINESSES 9310180070 931018 BUSINESS BRIEF WESTERN WASTE INDUSTRIES INC SUIT SAYS FIRM DIDN'T REVEAL PROBLEMS WITH PLANNED SALE A STOCKHOLDER HAS SUED WESTERN WASTE INDUSTRIES INC FOR ALLEGEDLY FAILING TO DISCLOSE INDICATIONS THAT AN ANNOUNCED SALE OF THE COMPANY TO BROWNINGFERRIS INDUSTRIES INC WOULDN'T TAKE PLACE CROYDEN ASSOCIATES AN ENTITY DESCRIBED ONLY AS A NEW YORK RESIDENT CLAIMED IN A SUIT FILED IN US DISTRICT COURT IN LOS ANGELES THAT MANAGERS AT WESTERN WASTE KNEW THAT THE TRANSACTION ANNOUNCED SEPT 2 WOULD LIKELY BE AFFECTED BY A SIGNIFICANT NEGATIVE CHANGE IN OPERATIONS RESULTS CROYDEN ALSO ALLEGED THAT THE TRANSACTION WAS DERAILED BY THE DISCOVERY BY HOUSTONBASED BROWNINGFERRIS OF EXTENSIVE NEPOTISM AND UNREASONABLE DEMANDS FOR GOLDEN PARACHUTES AT WESTERN WASTE A SPOKESMAN FOR WESTERN WASTE WHICH IS BASED IN TORRENCE CALIF SAID THE COMPANY WAS AWARE OF THE LAWSUIT BUT WAS STILL REVIEWING IT AND HAD NO COMMENT THE SUIT SEEKS CLASSACTION STATUS ON BEHALF OF PURCHASERS OF WESTERN WASTE COMMON STOCK BETWEEN SEPT 2 AND OCT 8 9310180068 931018 HEARD ON THE STREET GLOBAL HEALTH SCIENCES FUND IS POISED TO REAP GAIN FROM SAGGING SECTOR AND 10 DISCOUNT BY JONATHAN CLEMENTS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK IF YOU BOUGHT GLOBAL HEALTH SCIENCES FUND WHEN IT FIRST CAME OUT YOU PROBABLY FEEL SICK BUT IF YOU BUY IT TODAY YOU COULD BE IN FOR SOME HEALTHY GAINS SO SAYS CATHERINE GILLIS EDITOR OF MORNINGSTAR CLOSEDEND FUNDS A CHICAGO NEWSLETTER A BOUNCE BACK IS INEVITABLE RECKONS MS GILLIS GLOBAL HEALTH SCIENCES IS THE FUND I'M MOST EXCITED ABOUT THE 250 MILLION PUBLICLY TRADED FUND WHICH INVESTS IN EVERYTHING FROM MAJOR DRUG COMPANIES TO SMALL BIOTECHNOLOGY OUTFITS WAS LAUNCHED IN MIDJANUARY 1992 JUST AS THE HEALTHCARE STOCK BUYING BINGE WAS PEAKING SINCE THEN IT'S BEEN ALL DOWNHILL THE TIMING OF THE FUND'S LAUNCH COULDN'T HAVE BEEN WORSE SAYS RICHARD BARONE CHAIRMAN OF CLEVELAND'S MAXUS INVESTMENT GROUP ACCORDING TO FUND RESEARCHER LIPPER ANALYTICAL SERVICES GLOBAL HEALTH SCIENCES' PORTFOLIO TUMBLED 161 IN THE 20 MONTHS ENDED SEPT 30 WHILE THE STANDARD & POOR'S 500STOCK INDEX HAS GAINED 179 THESE ARE TOTAL RETURN FIGURES SO THEY REFLECT BOTH SHAREPRICE CHANGES AND REINVESTED DIVIDENDS AND THAT 161 LOSS IS ONLY PART OF THE STORY HOW COME GLOBAL HEALTH SCIENCES IS A CLOSEDEND FUND WHICH MEANS ITS SHARES ARE LISTED ON A STOCK EXCHANGE WHERE THEY CAN TRADE FOR MORE OR LESS THAN THE VALUE OF THE FUND'S UNDERLYING PORTFOLIO SINCE GLOBAL HEALTH SCIENCES' LAUNCH THE PERFORMANCE OF ITS SHARES HAS BEEN EVEN MORE SICKLY THAN THE PORTFOLIO THE FUND'S SHARES INITIALLY WERE SOLD TO THE PUBLIC FOR 15 BUT 105 OF THAT WENT TO BROKERAGE HOUSES SELLING THE FUND WITH ONLY 1395 INVESTED ON BEHALF OF SHAREHOLDERS THAT 1395 REPRESENTS THE FUND'S INITIAL PERSHARE PORTFOLIO VALUE A FIGURE THAT HAS SINCE TUMBLED TO 1227 BUT THAT HIT LOOKS MODEST COMPARED WITH THE DRUBBING SUFFERED BY THE FUND'S EXCHANGETRADED SHARES WHICH HAVE FALLEN TO 11 FROM 15 BECAUSE THE FUND'S STOCK IS SO BEATEN DOWN TODAY INVESTORS CAN BUY SHARES FOR 10 LESS THAN THE FUND'S PERSHARE PORTFOLIO VALUE IN EFFECT GLOBAL HEALTH SCIENCES IS DOUBLY CHEAP NOT ONLY DOES IT INVEST IN ONE OF THE STOCK MARKET'S MOST BEATENDOWN SECTORS BUT THE PRICE OF ADMISSION IS JUST 90 CENTS ON THE DOLLAR AMONG THOSE RECOMMENDING GLOBAL HEALTH SCIENCES IS GEORGE C SCOTT EDITOR OF THE SCOTT LETTER A RICHMOND VA NEWSLETTER MR SCOTT NOTES THAT WHILE THE FUND MAY BE RELATIVELY NEW IT'S RUN BY A VETERAN STOCKPICKER JOHN KAWESKE MR KAWESKE IS THE LONGTIME MANAGER OF INVESCO HEALTH SCIENCES PORTFOLIO A REGULAR NOLOAD NOCOMMISSION MUTUAL FUND DISTRIBUTED BY DENVER'S INVESCO FUNDS GROUP DESPITE POSTING DOUBLEDIGIT LOSSES BOTH THIS YEAR AND IN 1992 INVESCO HEALTH SCIENCES STILL RANKS AS THE MUTUALFUND INDUSTRY'S 32NDBEST PERFORMER OVER THE PAST FIVE YEARS JOHN KAWESKE HAS HAD A TERRIFIC RECORD WITH HIS MUTUAL FUND SAYS MR SCOTT MR KAWESKE SAYS THE GLOBAL HEALTH SCIENCES FUND HAS BEEFED UP ITS INVESTORRELATIONS EFFORTS IN AN ATTEMPT TO NARROW THE FUND'S DISCOUNT OUR PLAN IS TO MAKE OUR STORY KNOWN TO THE INVESTMENT COMMUNITY BUT IT'S AN UPHILL STRUGGLE BECAUSE OF THE UNCERTAINTY SURROUNDING HEALTHCARE REFORM HE SAYS INDEED SOME CLOSEDEND EXPERTS WANT TO SEE AN EVEN BIGGER DISCOUNT BEFORE THEY START BUYING IF YOU CAN FIND SOMETHING AT A 10 DISCOUNT AND YOU LIKE THE SECTOR IT'S PROBABLY NOT A BAD BUY SAYS RON OLIN PRESIDENT OF DEEP DISCOUNT ADVISORS AN ASHVILLE NC MONEY MANAGER BUT MY CONCERN IS THAT THERE'LL BE A MARKET CORRECTION AND ALL THE DISCOUNTS WILL WIDEN MR OLIN SAYS IT WOULD TAKE A DISCOUNT OF MORE THAN 20 TO GET HIM INTERESTED IN GLOBAL HEALTH SCIENCES FUND BUT TO MORNINGSTAR'S MS GILLIS THE FUND HAS ALL THE HALLMARKS OF A GREAT BUY AS SHE SEES IT GLOBAL HEALTH SCIENCES OFFERS A WAY TO BUY INTO A BLOODIED SECTOR OF THE MARKET BY PURCHASING A BARGAINPRICED FUND RUN BY A VETERAN MANAGER HEALTHCARE STOCKS ARE EXTREMELY CHEAP SAYS MS GILLIS AND THE FUND ITSELF IS VERY VERY CHEAP IT'S A HIGHPOWERED PLAY ON THE SECTOR MS GILLIS NOTES THAT BECAUSE THE FUND IS SITTING ON LARGE LOSSES IN ITS PORTFOLIO IT WOULD TAKE A SUBSTANTIAL BOUNCE BACK BEFORE THE FUND STARTED MAKING CAPITALGAINS DISTRIBUTIONS ON WHICH SHAREHOLDERS THEN HAVE TO PAY TAXES WHEN THIS FUND TURNS AROUND ALL THE GAINS WILL BE SHELTERED SAYS MS GILLIS IT'S A GREAT TAX SHELTER IF THE FUND'S PORTFOLIO DOES REBOUND THERE'S A CHANCE THAT THE GAP BETWEEN THE FUND'S SHARE PRICE AND ITS PORTFOLIO VALUE WOULD ALSO NARROW GIVING INVESTORS AN ADDED GAIN IF YOU'RE LUCKY YOU'LL GET A CLOSING OF THE DISCOUNT WHICH WILL BE THE ICING ON THE CAKE SAYS MS GILLIS I THINK IT'S A YUMMY PACKAGE 9310180067 931018 BUSINESS BRIEF ICF KAISER INTERNATIONAL INC DOE MERGES TWO CONTRACTS ON HANFORD NUCLEAR CLEANUP THE DEPARTMENT OF ENERGY SAID IT MERGED TWO OPERATIONS CONTRACTS ON ITS HANFORD FEDERAL NUCLEAR COMPLEX IN RICHLAND WASH IN AN EFFORT TO STREAMLINE ITS CLEANUP EFFORT THERE UNDER THE AMENDED CONTRACT KAISER ENGINEERS HANFORD CO THE UNIT OF ICF KAISER INTERNATIONAL INC THAT IS CURRENTLY ARCHITECTENGINEERING AND CONSTRUCTION MANAGER OF THE PROJECT WILL BECOME A SUBCONTRACTOR TO WESTINGHOUSE HANFORD CO NOW MANAGEMENT AND OPERATIONS CONTRACTOR AT THE SITE ICF KAISER BASED IN FAIRFAX VA IS AN ENVIRONMENTAL ENGINEERING AND CONSULTING FIRM WESTINGHOUSE HANFORD IS A UNIT OF PITTSBURGH PABASED WESTINGHOUSE ELECTRIC CORP THE AMENDED CONTRACT WHICH KAISER SAID WAS VALUED AT 800 MILLION OVER ITS 2 1/2YEAR LIFE WILL REDUCE COSTS AND IMPROVE MANAGEMENT AND CONTROL OF THE RESERVATION A DOE SPOKESMAN SAID THE HANFORD RESERVATION IS A 40YEAR 57 BILLION PROJECT LAUNCHED BY THE DOE IN 1989 TO CLEAN UP NUCLEAR WASTE FROM THE FORMER PLUTONIUM PRODUCTION FACILITY 9310180066 931018 DOW JONES INDEX DROPS A&W NEW YORK A&W BRANDS INC WAS REMOVED FROM THE BEVERAGES INDUSTRY GROUP OF THE DOW JONES EQUITY MARKET INDEX EFFECTIVE TODAY A&W IS BEING ACQUIRED BY CADBURYSCHWEPPES PLC 9310180065 931018 BUSINESS BRIEF TELEFON AB LM ERICSSON TELECEL AGREES ON DELIVERY OF RADIO AND SWITCHING GEAR SWEDISH TELECOMMUNICATIONS GROUP TELEFON AB LM ERICSSON SAID IT REACHED AGREEMENT WITH TELECEL OF PORTUGAL ON DELIVERIES OF RADIO AND SWITCHING EQUIPMENT FOR THE PORTUGUESE MOBILETELEPHONE OPERATOR'S 1994 EXPANSION PLANS TELECEL HAS NOW PLACED FIRM ORDERS FOR A TOTAL OF 500 MILLION KRONOR 631 MILLION WITHIN THE GSM GLOBAL SYSTEM FOR MOBILE COMMUNICATIONS SUPPLY AGREEMENT SIGNED IN 1992 ERICSSON SAID THESE ORDERS WILL INCREASE COVERAGE CAPACITY AND ADD NEW FEATURES TO THE TELECEL NETWORK WHICH TODAY HAS THE THIRDBIGGEST SUBSCRIBER BASE OF ANY DIGITAL CELLULAR NETWORK IN THE WORLD IT SAID THE NETWORK'S GROWTH IS FAR AHEAD OF ORIGINAL PLANS AND PORTUGAL HAS THE SECONDHIGHEST PENETRATION OF GSM SUBSCRIBERS IN EUROPE THE GROUP SAID 9310180064 931018 BUSINESS BRIEF GREYCOAT PLC PROPERTY CONCERN DISCUSSES TAKEOVER WITH OTHER PARTIES GREYCOAT PLC A BRITISH PROPERTY COMPANY SAID IT IS IN PRELIMINARY TALKS WITH OTHER PARTIES ABOUT A POSSIBLE TAKEOVER OR RESTRUCTURING THE COMPANY SAID IT HASN'T RECEIVED A FORMAL PROPOSAL ALTHOUGH IT IS ENTERTAINING APPROACHES FROM INTERESTED PARTIES GREYCOAT SAID IT IS UNLIKELY THAT THESE DISCUSSIONS WILL LEAD TO DEFINITE PROPOSALS BEFORE THE LATTER PART OF THIS WEEK THE COMPANY WAS RESPONDING TO MEDIA AND MARKET SPECULATION RECENTLY ABOUT A POSSIBLE TAKEOVER AND RESTRUCTURING 9310180063 931018 CREDIT RATING CYPRUS MINERALS CO DENVER STANDARD & POOR'S CORP SAID IT WOULD LOWER ITS RATING ON CYPRUS MINERALS SENIOR DEBT TO TRIPLEBMINUS FROM TRIPLEB WHEN THE MINING CONCERN COMPLETES ITS ACQUISITION OF AMAX INC IN ADDITION S&P AFFIRMED ITS TRIPLEBMINUS RATING FOR AMAX SENIOR SECURED DEBT AND ITS DOUBLEBPLUS RATING ON AMAX SUBORDINATED DEBT THE RATINGS HAD BEEN PLACED ON CREDITWATCH IN MAY AFTER THE MERGER WITH CYPRUS MINERALS WAS ANNOUNCED AMAX BASED IN NEW YORK HAD 16 BILLION IN DEBT OUTSTANDING AT JUNE 30 S&P SAID S&P SAID THAT WHEN THE MERGER IS COMPLETED PROBABLY IN NOVEMBER ITS RATING ON CYPRUS MINERALS WILL MATCH ITS AMAX RATING TOTAL DEBT LEVERAGE OF THE COMBINED COMPANY WILL BE AGGRESSIVE S&P SAID NOTING AS WELL THAT THE COMPANY'S EXTENSIVE COAL OPERATIONS SHOULD PRODUCE STABLE EARNINGS 9310180061 931018 INTERNATIONAL BRIEF ALLIED GROUP LTD FIRSTHALF NET JUMPED 38 PROBE OF PRACTICES CONTINUES HONG KONG'S ALLIED GROUP LTD REPORTED A 38 GAIN IN NET INCOME FOR THE SIX MONTHS ENDED JUNE 30 AND CALLED THE RESULT VERY SATISFACTORY IN LIGHT OF A DISRUPTIVE AND ONGOING INVESTIGATION INTO THE COMPANY'S BUSINESS PRACTICES EARNINGS TOTALED 893 MILLION HONG KONG DOLLARS US115 MILLION COMPARED WITH HK645 MILLION A YEAR EARLIER THE PROPERTY FOOD PROCESSING CHEMICALS TRANSPORTATION AND BUILDING MATERIALS CONCERN ALSO REPORTED AN EXTRAORDINARY GAIN OF HK323 MILLION WHICH COMPARED WITH AN EXTRAORDINARY LOSS OF HK171 MILLION IN THE YEAREARLIER PERIOD THE COMPANY HAS BEEN UNDER INVESTIGATION BY VARIOUS HONG KONG GOVERNMENT AUTHORITIES FOR THE PAST YEAR WHILE NO CHARGES HAVE BEEN FILED THE GOVERNMENT HAS QUESTIONED FINANCIAL PRACTICES THE GROUP TOOK A ONETIME CHARGE AGAINST EXTRAORDINARY INCOME OF HK155 MILLION FOR COSTS RELATED TO THE INVESTIGATION 9310180060 931018 BUSINESS BRIEF GULF STATES UTILITIES CO CUSTOMER REFUND MAY FORCE UNSPECIFIED EARNINGS CHARGE GULF STATES UTILITIES CO SAID IT MAY TAKE AN UNSPECIFIED CHARGE AGAINST EARNINGS STEMMING FROM AN AGREEMENT TO REFUND 23 MILLION TO CUSTOMERS IN 13 TEXAS CITIES A SPOKESWOMAN FOR THE BEAUMONT TEXAS UTILITY SAID SHE WASN'T SURE IF THERE WILL BE A CHARGE OR WHEN IT WOULD BE TAKEN BUT SHE SAID THAT IT'S POSSIBLE THAT THE REFUND WOULD AFFECT THE UTILITY'S BOTTOM LINE THE REFUND WAS NEGOTIATED WITH CUSTOMERS WHO CONTEND THAT THE COMPANY'S RETURN ON EQUITY IN 1991 WAS EXCESSIVE 9310180059 931018 BUSINESS BRIEF CALTON INC CONSTRUCTION CONCERN POSTS 22 MILLION QUARTERLY NET CALTON INC REPORTED A PROFIT OF 22 MILLION FOR ITS FISCAL THIRD QUARTER THE FIRST QUARTERLY RESULTS SINCE IT COMPLETED A BANKRUPTCYCOURT REORGANIZATION THE RESIDENTIAL CONSTRUCTION CONCERN EARNED EIGHT CENTS A SHARE ON REVENUE OF 418 MILLION FOR THE QUARTER ENDED AUG 31 IN THE 1992 QUARTER CALTON HAD A LOSS OF 121 MILLION OR 36 CENTS A SHARE ON REVENUE OF 375 MILLION THE RESULTS AREN'T COMPARABLE BECAUSE OF THE MANALAPAN NJ COMPANY'S ADOPTION OF FRESHSTART ACCOUNTING IN MAY IN WHICH CALTON RESTATED ITS ASSETS AND LIABILITIES AT FAIR MARKET VALUE CALTON WHICH ENTERED CHAPTER 11 BANKRUPTCYLAW PROCEEDINGS IN MARCH AND EMERGED IN MAY SAID REVENUE ROSE 12 BECAUSE THE AVERAGE SALES PRICE FOR HOMES DELIVERED IN THE QUARTER ROSE TO 190000 FROM 141000 IN THE 1992 THIRD QUARTER 9310180058 931018 BUSINESS BRIEF HERCULES INC REIMBURSEMENT IS EXPECTED FOR SOME TITAN IV COSTS HERCULES INC SAID IT EXPECTS TO BE REIMBURSED MORE THAN 200 MILLION FOR INITIAL COSTS INCURRED IN THE TITAN IV ROCKET BOOSTER PROGRAM A SPOKESMAN FOR THE WILMINGTON DEL CHEMICAL CONCERN SAID THE REIMBURSEMENT WOULD COVER A SIGNIFICANT PORTION OF THE INITIAL INVESTMENT AND DEVELOPMENT COST UNDER THE AIR FORCE PROGRAM STILL THE TITAN PROJECT HAS BEEN COSTLY FOR HERCULES IN 1989 HERCULES TOOK MORE THAN 200 MILLION IN WRITEOFFS RELATED TO THE PROGRAM AND FOLLOWING AN EXPLOSION OF THE ROCKET BOOSTER DURING A TESTFIRING HERCULES TOOK ANOTHER 68 MILLION CHARGE IN 1991 THE REIMBURSEMENT BY THE AIR FORCE THROUGH MARTIN MARIETTA CORP THE PROJECT'S PRIME CONTRACTOR IS PART OF AN AGREEMENT AIMED AT DISMISSING LITIGATION BETWEEN MARTIN MARIETTA AND HERCULES LAST YEAR HERCULES FILED A BREACHOFCONTRACT SUIT AGAINST MARTIN MARIETTA RELATED TO THE TITAN PROJECT 9310180057 931018 THE OUTLOOK SOME HOPE CONGRESS WILL ALTER HEALTH PLAN BY ALAN MURRAY WASHINGTON IN THE CLINTON ADMINISTRATION THERE ARE THREE PEOPLE THE PRESIDENT HIS WIFE AND HIS SCHOOLMATE IRA MAGAZINER WHO ARE CONVINCED THAT THE CLINTON HEALTHCARE PLAN CAN DO ALL THE WONDERFUL THINGS IT PROMISES WITHOUT A BIG HIT TO TAXPAYERS OR THE DEFICIT BUT BEYOND THOSE THREE SCARCELY ANYONE SHARES THAT CONVICTION TO BE SURE OTHERS IN THE ADMINISTRATION DO THEIR BEST TO PUT UP A LOYAL FRONT WHITE HOUSE ECONOMIC CZAR ROBERT RUBIN AND ECONOMIC ADVISER LAURA TYSON POLITELY DEFER TO THE GREATER WISDOM OF HEALTHCARE EXPERTS TREASURY SECRETARY LLOYD BENTSEN PRACTICES A COURTLY TEXAS SIDESTEP AND BUDGET DIRECTOR LEON PANETTA AND HIS DEPUTY ALICE RIVLIN TRY TO AVOID THE HEALTH ISSUE ALTOGETHER BUT AMONG THE ADMINISTRATION'S ECONOMIC EXPERTS DEEP CONCERN ABOUT THE FINANCING OF THE HEALTHCARE PLAN IS HEARD AT EVERY TURN IN PRIVATE CONVERSATIONS THEY FREQUENTLY TAKE SOLACE IN THE BELIEF THAT IN THE END CONGRESS WILL FIX IT HOPE SPRINGS ETERNAL TWELVE YEARS AGO A SIMILAR REFRAIN WAS SHARED PRIVATELY AMONG THE ECONOMIC ADVISERS COUNSELING PRESIDENT REAGAN THE PRESIDENT WAS A TRUE BELIEVER IN HIS SUPPLYSIDE TAX CUT AND WAS CONVINCED IT WOULD LEAD TO A FLOOD OF NEW REVENUE THAT WOULD PREVENT ANY WORSENING OF THE DEFICIT HE WAS EMBOLDENED IN THAT BELIEF BY OUTSIDERS SUCH AS THENREP JACK KEMP AND BY A FEW TRUEBELIEVERS IN HIS TREASURY DEPARTMENT BUT MOST OF HIS ECONOMIC ADVISERS WORRIED THAT THE TAX CUT THEY HAD PROPOSED WAS TOO RICH THEY DESPAIRED OF FINDING ENOUGH SPENDING CUTS TO OFFSET IT AND AMONG THEMSELVES THEY TOOK COMFORT IN THE BELIEF THAT CONGRESS WOULD IN THE END SAVE THE ADMINISTRATION FROM ITSELF EVEN SENATOR ROBERT DOLE THE REPUBLICAN'S CHIEF TAX WRITER PREDICTED CONGRESS WOULD ADOPT ONLY HALF OF THE PRESIDENT'S TAX CUT INSTEAD CONGRESS IN 1981 ADOPTED ALL OF THE PRESIDENT'S TAX CUT AND MORE AND THE REST IS REDINK HISTORY IT IS A LESSON THAT MR CLINTON AND HIS ADVISERS WOULD DO WELL TO REMEMBER WHEN IT COMES TO A FREE LUNCH CONGRESS IS AS QUICK TO THE TABLE AS THOSE IN THE WHITE HOUSE MUCH HAS CHANGED SINCE 1981 OF COURSE UNDER CURRENT PAYASYOUGO BUDGET LAWS CONGRESS MUST PAY FOR TAX CUTS OR NEW ENTITLEMENT PROGRAMS BY ENACTING OFFSETTING TAX HIKES OR SPENDING CUTS AT THE SAME TIME AND AS THE OFFICIAL SCOREKEEPER IN THIS BUDGETING GAME THE CONGRESSIONAL BUDGET OFFICE WIELDS IMMENSE POWER BUT THE CLINTON HEALTHCARE PLAN PUTS THE CBO AND ITS DIRECTOR ROBERT REISCHAUER IN A DIFFICULT SPOT THE KEY TO FINANCING THE PLAN IN ADDITION TO THE TOBACCO TAX IS CUTS IN MEDICARE AND MEDICAID AND A STRINGENT CAP ON THE COST OF HEALTHCARE PREMIUMS TO HOLD THEIR GROWTH TO THE RATE OF INFLATION THE WHITE HOUSE HAS SAID IT PLANS TO SPELL OUT IN DETAIL ITS MEDICARE AND MEDICAID CUTS AND TO DESIGN A PREMIUM CAP FROM WHICH THERE IS NO ESCAPE AS A RESULT THE TECHNICIANS AT THE CBO WILL HAVE LITTLE CHOICE BUT TO SCORE THE SAVINGS THAT RESULT NEVERTHELESS MR REISCHAUER'S PUBLIC STATEMENTS HAVE MADE IT CLEAR THAT HE IS AMONG THOSE WHO LIKE MOST OF THE PRESIDENTS' ECONOMIC ADVISERS FEAR THE PREMIUM CAP WILL PROVE TOO STRINGENT IN PRACTICE THE PRESIDENT CONTENDS THE CAP WILL MERELY SQUEEZE OUT WASTE AND INEFFICIENCY BUT THE LEGIONS OF SKEPTICS WORRY IT MAY CUT DEEP INTO THE FABRIC OF THE HEALTHCARE SYSTEM CAUSING HUGE DISRUPTIONS PATIENTS COULD BE DENIED NEEDED CARE OR HAVE TO WAIT MONTHS TO GET IT OR HAVE THEIR OPTIONS STRICTLY LIMITED IN ORDER TO FIT INTO THIS PROCRUSTEAN BED FACED WITH CRIES OF PAIN AND PROTEST CONGRESS WOULD BE CONFRONTED WITH A CHOICE OF EITHER TAKING AWAY COSTLY BENEFITS IT HAS ALREADY APPROVED OR LIFTING THE CAP CAN ANYONE DOUBT THE RESULT THE CAP WOULD RISE AND THE GOVERNMENT'S HEALTHCARE EXPENSES WOULD SOAR BEYOND PROJECTIONS IT IS POSSIBLE OF COURSE THAT THE CLINTONS AND MR MAGAZINER ARE RIGHT AND THE CONVENTIONAL WISDOM IS WRONG NO ONE HAS A CRYSTAL BALL THAT ALLOWS THEM TO GAZE CONFIDENTLY INTO THE COMPLEX FUTURE OF HEALTH CARE AND A SLOWING IN THE RISE OF HEALTHCARE COSTS SINCE THE FIRST OF THE YEAR SUGGESTS THE GOAL OF HOLDING PREMIUM INCREASES TO THE INFLATION RATE MAY BE LESS FARFETCHED THAN MANY THINK IT IS ALSO POSSIBLE THAT CONGRESS WILL INDEED FIX IT FORMER SEN PAUL TSONGAS FOR ONE BELIEVES CONGRESS WILL BE FISCALLY RESPONSIBLE AND ELIMINATE MANY OF THE MORE EXPENSIVE PIECES OF THE HEALTHCARE PLANTHE PRESCRIPTIONDRUG BENEFIT AND LONGTERMCARE BENEFIT FOR THE ELDERLY FOR INSTANCE AS WELL AS MENTALHEALTH BENEFITS AND THE SUBSIDY FOR EARLY RETIREES THE COSTS FOR ALL THESE ADDONS ARE NOT ONLY HUGE THEY ARE UNKNOWABLE SAYS MR TSONGAS A FORMER PRESIDENTIAL CANDIDATE AND IN THE END HE BELIEVES CONGRESS WILL ELIMINATE THEM TO AVOID THE POSSIBILITY OF A RUNAWAY DEFICIT WITH ENORMOUS CONSEQUENCES BUT FOR WHITE HOUSE OFFICIALS TO CROSS THEIR FINGERS AND HOPE THAT EITHER THINGS WILL TURN OUT BETTER THAN EXPECTED OR THAT CONGRESS WILL PROVIDE THE DISCIPLINE THE WHITE HOUSE DIDN'T ISN'T EXACTLY A PRUDENT WAY TO APPROACH SUCH A MONUMENTAL PIECE OF LEGISLATION WHEN PRESIDENT CLINTON PUT TOGETHER HIS BUDGET PROPOSAL EARLIER THIS YEAR HE USED RELATIVELY PESSIMISTIC ECONOMIC PROJECTIONS BECAUSE HE WANTED TO MAKE SURE THAT ANY SURPRISES ON THE DEFICIT WOULD BE GOOD NEWS NOT BAD A SIMILAR APPROACH TO HEALTH CARE WOULD HAVE SERVED HIM WELL INSTEAD THE PRESIDENT'S ADVISERS AND THE NATION WILL HAVE TO BE BRACED FOR SOME UNPLEASANT SURPRISES 9310180056 931018 MARKETING BRIEF NEW YORK TIMES CO AD VOLUME FELL LAST MONTH FOR NEW YORK NEWSPAPER NEW YORK TIMES CO SAID THE NEW YORK TIMES' ADVERTISING VOLUME FELL 22 IN SEPTEMBER WAS FLAT IN THE THIRD QUARTER AND SLIPPED 16 IN THE NINEMONTH PERIOD THE PAPER'S AD VOLUME WAS 6408300 LINES IN SEPTEMBER 17429600 LINES IN THE QUARTER AND 54851200 LINES FOR THE NINEMONTH PERIOD AS FOR ITS REGIONAL NEWSPAPER GROUP THE NEW YORKBASED COMPANY SAID TOTAL ADVERTISING ROSE 5 IN SEPTEMBER 27 IN THE QUARTER AND 39 IN THE NINEMONTH PERIOD ADVERTISING TOTALED 2842900 INCHES IN SEPTEMBER 8325000 INCHES IN THE QUARTER AND 254090400 INCHES IN THE NINE MONTHS TO SEPTEMBER 9310180054 931018 WHAT'S NEWS WORLDWIDE US WARSHIPS PATROLLED OFF HAITI AND FOREIGNERS FLED THE COUNTRY PRESIDENT CLINTON DISPATCHED SIX SHIPS TO ENFORCE A UN EMBARGO SCHEDULED TO TAKE EFFECT AT MIDNIGHT TONIGHT AND HE ORDERED 600 MARINES TO STAND BY IN CASE THEY ARE NEEDED TO RESCUE AMERICAN CITIZENS HUNDREDS OF AMERICANS AND CANADIANS JAMMED THE AIRPORT AMID FEARS OF VIOLENCE OPPONENTS OF THE UN PLAN THAT WOULD RESTORE PRESIDENT ARISTIDE TO POWER THREATENED TO SHUT DOWN THE CAPITAL TODAY ARMY CHIEF CEDRAS WHOSE RESIGNATION IS PART OF THE UN PLAN CALLED FOR A NATIONAL CONFERENCE TO DECIDE HAITI'S FUTURE SENATE MINORITY LEADER DOLE SAID HE WOULD OFFER LEGISLATION EARLY THIS WEEK REQUIRING CONGRESSIONAL AUTHORIZATION BEFORE US TROOPS COULD BE SENT TO HAITI ABOUT 1000 SOMALIS TURNED OUT FOR A PEACE DEMONSTRATION IN MOGADISHU AS PART OF A CAMPAIGN BY CLAN LEADER AIDID TO CHANGE HIS WARLORD IMAGE MEANWHILE THE US AMBASSADOR TO THE UN SAID THE WORLD BODY HAD CALLED OFF ITS SEARCH FOR AIDID THOUGH IT STILL HOPED TO HOLD HIM ACCOUNTABLE FOR ATTACKS ON UN TROOPS THE SENATE ENDORSED CLINTON'S MARCH 31 DATE FOR WITHDRAWING US TROOPS FROM SOMALIA THE PRESIDENT SAID THAT HE WAS GRATIFIED BY THE MARGIN OF THE 7623 VOTE EARLY FRIDAY MORNING ADDING THAT HE WOULD TRY TO REMOVE ALL AMERICAN SOLDIERS SAFELY BY THE MARCH DEADLINE LOS ANGELES POLICE PREPARED TO TAKE STEPS TO PREVENT VIOLENCE FROM ERUPTING WHEN VERDICTS ARE READ IN THE TRIAL OF TWO MEN CHARGED IN THE BEATING OF A TRUCK DRIVER DURING LAST YEAR'S RIOTS A JURY SAID SATURDAY IT HAD REACHED DECISIONS ON SOME COUNTS BUT WAS HOPELESSLY DEADLOCKED ON OTHERS INCLUDING ATTEMPTED MURDER INDIAN OFFICIALS TRIED TO PERSUADE MUSLIM SEPARATISTS TO END THEIR OCCUPATION OF KASHMIR'S HOLIEST SHRINE BUT THE REBELS REFUSED AND VOWED TO BLOW UP THE MOSQUE IF TROOPS ENTERED PRIME MINISTER RAO MET WITH AIDES TO DISCUSS EVENTS AT THE HAZRATBAL MOSQUE THOUGHT TO BE THE BASE FOR MILITANTS SEEKING INDEPENDENCE FOR JAMMUKASHMIR STATE MANDELA AND DE KLERK SAID THE NOBEL PEACE PRIZE AWARDED TO THEM ON FRIDAY WOULD BE AN INSPIRATION TO STAND FIRM AGAINST POLITICAL VIOLENCE IN SOUTH AFRICA AND TO PURSUE A PEACEFUL TRANSITION TO DEMOC RACY THE AFRICAN NATIONAL CONGRESS LEADER AND THE SOUTH AFRICAN PRESIDENT WERE HONORED FOR THEIR EFFORTS TO END APARTHEID POWER COMPANIES WOULD HELP IN MANAGING FEDERAL HYDROELECTRIC PROJECTS UNDER A CLINTON ADMINISTRATION PROPOSAL FOR REDUCING EMISSIONS OF GASES THAT CONTRIBUTE TO GLOBAL WARMING OFFICIALS SAY THE COMPA NIES COULD BRING MORE EFFICIENCY TO THE OPERATION OF DAMS SERBS CROATS AND MUSLIMS FOUGHT FOR TERRITORY ACROSS BOSNIA AND ACCUSED EACH OTHER OF PLANNING MILITARY OFFENSIVES SARAJEVO ENDURED ITS WORST SHELLING IN WEEKS ON SATURDAY WITH 10 PEOPLE REPORTED KILLED BRITISH PEACEKEEPERS NEAR VITEZ INTERVENED TO PREVENT A CLASH BETWEEN DRIVERS OF A MUSLIM RELIEF CONVOY AND LOCAL CROATS THE HOUSE VOTED TO EXTEND A NEARLY TWOYEAROLD PROGRAM OF EMERGENCY UNEMPLOYMENT BENEFITS FRIDAY'S 30295 VOTE CAME TWO WEEKS AFTER THE PROGRAM LAPSED FOLLOWING TWO FAILED ATTEMPTS BY DEMOCRATS TO PASS THE LEGISLATION GERMANY DENIED BRITISH AND US ALLEGATIONS THAT BONN IS PROVIDING IRAN WITH POLITICAL AND ECONOMIC SUPPORT A BONN GOVERNMENT SPOKESMAN SAID ON FRIDAY THAT CONTACTS WITH TEHRAN ARE OF A HUMANITARIAN NATURE AN ISRAELI OFFICIAL ANNOUNCED THAT THE NEXT ROUND OF MIDEAST PEACE TALKS HAS BEEN DELAYED AFTER SYRIA THREATENED TO STAY AWAY IN WASHINGTON THE STATE DEPARTMENT DECLINED IMMEDIATE COMMENT ON THE ISRAELI STATEMENT ABOUT THE TALKS WHICH HAD BEEN EXPECTED TO RECONVENE IN MIDOCTOBER REBELS DEALT A BLOW TO GEORGIAN LEADER SHEVARDNADZE BY CAPTURING AN IMPORTANT INLAND TOWN SAMTREDIA AFTER WEEKEND BATTLES WITH GOVERNMENT FORCES THAT LEFT AT LEAST 40 PEOPLE DEAD A YELTSINBACKED COALITION NOMINATED A SLATE OF REFORMERS INCLUDING SOME CABINET MEMBERS TO RUN FOR RUSSIA'S NEW PARLIAMENT THE COALITION RUSSIA'S CHOICE WAS SET UP BY THE PRESIDENT'S ALLIES MEANWHILE A TWOWEEK STATE OF EMERGENCY WAS EXPECTED TO BE LIFTED TODAY IN MOSCOW 9310180053 931018 BUSINESS BRIEF MOTOROLA INC POWERPC VENTURE PRODUCES POWERSAVING CHIP SAMPLES MOTOROLA INC AND INTERNATIONAL BUSINESS MACHINES CORP SAID THEY PRODUCED THE FIRST SAMPLES OF THE SECOND MICROPROCESSOR CHIP IN THE POWERPC FAMILY DEVELOPED BY THE COMPANIES WITH APPLE COMPUTER INC THE NEW POWERPC 603 CHIP IS DESIGNED TO BE USED IN NOTEBOOKSIZED COMPUTERS IT HAS ABOUT THE SAME PROCESSING POWER AS THE EARLIER POWERPC 601 CHIP BUT THE NEW CHIP HELPS CONSERVE BATTERY LIFE BY CONSUMING JUST THREE WATTS OF ELECTRICAL POWER COMPARED WITH 85 WATTS FOR THE EARLIER POWERPC 601 CHIP AND MORE THAN 13 WATTS FOR THE PENTIUM CHIP MANUFACTURED BY RIVAL INTEL CORP SAID PHIL POMPA A MOTOROLA MARKETING DIRECTOR A SPOKESWOMAN FOR APPLE SAID THE CHIP IS LIKELY TO BEGIN APPEARING IN NEW MODELS OF THE COMPANY'S POWERBOOK PORTABLECOMPUTER LINE IN ABOUT A YEAR 9310180052 931018 WHAT'S NEWS BUSINESS AND FINANCE COX ENTERPRISES AND ADVANCE PUBLICATIONS AGREED TO INVEST 500 MILLION EACH IN QVC NETWORK CONTINGENT ON QVC'S ACQUISITION OF PARAMOUNT THE STOCK INVESTMENTS APPEAR TO FURTHER STRENGTHEN QVC'S HAND IN ITS BID FOR PARAMOUNT AND TO REDUCE THE LIKELIHOOD THAT QVC WILL SEEK FURTHER FINANCIAL BACKING FROM TELECOMMUNICATIONS' CHIEF JOHN MALONE A RULING ALLOWING BELL ATLANTIC TO SELL CABLE SERVICE IN AREAS WHERE IT PROVIDES PHONE SERVICE WILL BE APPEALED BY THE JUSTICE DEPARTMENT BELL SAID THE APPEAL HAS LITTLE BEARING ON ITS PLANS TO BUY CABLE GIANT TCI MEDICALPRICE INFLATION SLOWED TO A MODERATE 42 ANNUAL RATE IN THE THIRD QUARTER FROM 7 IN THE SECOND QUARTER REFLECTING LOWER OVERALL INFLATION AND EMPLOYERS' COSTCUTTING EFFORTS LAST MONTH OVERALL CONSUMER PRICES ROSE 01 INDUSTRIAL OUTPUT CLIMBED 02 ALYESKA'S OPERATION OF THE TRANSALASKA PIPELINE HAS POTENTIALLY DANGEROUS FLAWS A STUDY ORDERED BY THE INTERIOR DEPARTMENT INDICATES THE GOVERNMENT IS LIKELY TO USE THE PIPELINE REPORT TO FORCE CHANGES IN THE OIL INDUSTRY'S OPERATIONS IN ALASKA CR BARD'S CHAIRMAN AND FIVE OTHER CURRENT AND FORMER MANAGERS WERE INDICTED FOR THEIR ALLEGED INVOLVE MENT IN A SCANDAL OVER THE COMPANY'S HEARTSURGERY INSTRUMENTS BARD AGREED TO PLEAD GUILTY AND PAY 61 MILLION IN PENALTIES ON SEPARATE CHARGES ARISING FROM THE SALE OF THE DEVICES APPLE IS EXPECTED TO CONSOLIDATE ITS PRODUCT LINES AND CUT PRICES AS MUCH AS 20 TO PERSUADE POTENTIAL CUSTOMERS NOT TO WAIT FOR ITS MUCH MORE ADVANCED MODELS DUE OUT IN MARCH JOHN SCULLEY QUIT AS APPLE'S CHAIRMAN LEAVING WITH A REPUTATION AS A VISIONARY WHO BUILT AN INDUSTRY POWERHOUSE BUT MAY HAVE BEEN BLINDED TO THE MUNDANE MATTERS OF RUNNING IT A PROBE OF CAREMARK INTERNATIONAL INTENSIFIED AS INVESTIGATORS EXAMINED WHETHER THE HOMEHEALTH COMPANY PAID KICKBACKS TO DOCTORS AT A MINNESOTA HOSPITAL TO GENERATE BUSINESS HILLENBRAND'S HILLROM UNIT IS THE SUBJECT OF A FEDERAL ANTITRUST INVESTIGATION OF THE HOSPITALBED INDUSTRY JUNKBOND FUNDS ATTRACTED A RECORD 775 MILLION LAST WEEK AS THE HIGHYIELD JUNK MARKET CAUGHT UP WITH THE HUGE RALLY IN TREASURY BONDS NATIONAL MEDICAL ADDED 250 MILLION TO A PRETAX RESERVE LARGELY TO PAY FOR SETTLEMENTS WITH INSURERS THE HOSPITAL OPERATOR REVISED ITS FIRSTQUARTER RESULTS TO SHOW A 408 MILLION LOSS OIL PRICES FELL AFTER A UN REPORT ON IRAQ'S WEAPONS COMPLIANCE RAISED THE PROSPECT THAT IRAQ COULD RESUME EXPORTS SOONER THAN EXPECTED A GROUP OF COMPUTERINDUSTRY GIANTS PLANS TO DISTRIBUTE SOFTWARE TO MAKE IT EASIER FOR MAJOR COMPANIES TO KEEP TRACK OF ALL THE PERSONAL COMPUTERS AND SOFTWARE THEY OWN STOCKS VOLUME 358806150 SHARES DOW JONES INDUSTRIALS 362973 UP 810 TRANSPORTATION 164095 UP 491 UTILITIES 24605 UP 251 BONDS LEHMAN BROTHERS TREASURY INDEX 576690 UP 3668 COMMODITIES OIL 1827 A BARREL OFF 23 CENTS DOW JONES FUTURES INDEX 12801 UP 015 SPOT INDEX 11740 OFF 128 DOLLAR 10715 YEN OFF 020 16185 MARKS UP 00060 OVERALL CONSUMER PRICES FOR SEPTEMBER WERE FLAT YESTERDAY'S WHAT'S NEWS COLUMN INCORRECTLY STATED THAT OVERALL CONSUMER PRICES ROSE 01 9310180051 931018 TRACKING TRAVEL BY JONATHAN DAHL MOST COMPANIES HAVE CUT BACK ON FIRSTCLASS TRAVEL AND OTHER PERKS WHEN THEIR EMPLOYEES TAKE DOMESTIC TRIPS BUT THEY'RE NOT ANYWHERE NEAR AS STRICT ABOUT INTERNATIONAL TRIPS ONLY 14 OF COMPANIES REQUIRE EMPLOYEES TO STAY WITHIN CERTAIN SPENDING GUIDELINES FOR LODGING ABROAD ACCORDING TO A RECENT SURVEY BY RUZENHEIMER INTERNATIONAL LTD TRAVELINDUSTRY EXPERTS SAY MOST EMPLOYEES CAN ALSO STILL FLY ON THE AIRLINE OF THEIR CHOICE WHEN THEY GO ABROAD DOMESTICALLY COMPANIES EITHER TELL EMPLOYEES OR STRONGLY SUGGEST WHICH AIRLINES TO FLY AND WHICH HOTELS TO USE BUT IT'S DIFFERENT ON THE INTERNATIONAL SIDE SAYS JEANIE THOMPSONSMITH PRESIDENT OF TOPAZ ENTERPRISES A TRAVELMANAGEMENT CONCERN IN PORTLAND ORE THE INTERNATIONAL TRIPS JUST DON'T GET THE SAME ATTENTION ONCE A SMALL PART OF CORPORATE TRAVEL BUDGETS INTERNATIONAL TRAVEL HAS GROWN SHARPLY SINCE THE EARLY '80S IT NOW ACCOUNTS FOR 10 TO 20 OF THE MORE THAN 100 BILLION US COMPANIES SPEND ON TRAVEL ANNUALLY BUT WHEN COMPANIES TRY TO IMPOSE GUIDELINES ON INTERNATIONAL TRAVEL THEY USUALLY RUN INTO HEAVY RESISTANCE FROM THEIR EMPLOYEES WHO STILL PINE FOR THE DAYS WHEN BUSINESS TRAVEL WAS PRESTIGIOUS SOME EXECUTIVES ARGUE THAT MORE PERKS SHOULD BE PERMITTED ON INTERNATIONAL TRIPS BECAUSE SUCH JOURNEYS TAKE LONGER AND USUALLY INVOLVE MORE HASSLES MS THOMPSONSMITH SAYS EVEN COMPANIES THAT FIGHT THIS RESISTANCE DON'T ALWAYS SAVE MONEY THEY MAKE THE MISTAKE OF APPLYING TO FOREIGN TRAVEL THE SAME RULES THEY HAVE FOR DOMESTIC TRIPS FOR EXAMPLE SOME COMPANIES REQUIRE EMPLOYEES TO FLY BETWEEN CERTAIN HOURS OF THE DAY TO SAVE MONEY THAT WORKS ON DOMESTIC TRAVEL SAYS MS THOMPSONSMITH BUT SOMETIMES THERE'S ONLY ONE FLIGHT A DAY TO A FOREIGN CITY TRAIN TRAVEL IS PICKING UP AFTER TWO YEARS OF DECLINING BUSINESS AMTRAK SAYS RIDERSHIP WAS UP 38 IN THE FIRST 11 MONTHS OF ITS FISCAL YEAR ENDED SEPT 30 WHEN YEAREND FIGURES ARE REPORTED THEY ARE LIKELY TO BE CLOSE TO THOSE FOR FISCAL 1990 A RECORD YEAR FOR AMTRAK WHILE RIDERSHIP DECLINED ONLY SLIGHTLY IN FISCAL 1991 AND FISCAL 1992 THE FISCAL 1993 INCREASE IS OF SOME SIGNIFICANCE IN THAT AMTRAK CAN'T EXPAND ITS SERVICE TO ANY GREAT EXTENT THAT'S BECAUSE ITS ABILITY TO BUY NEW TRAINS IS LIMITED BY CONGRESS WHICH SUBSIDIZES THE RAILROAD STILL A LONG WAY FROM BEING PROFITABLE AMTRAK RECEIVED MORE THAN 500 MILLION IN FEDERAL FUNDS IN ITS LATEST FISCAL YEAR AMTRAK SAYS AN INCREASE IN BUSINESS TRIPS AND HIGHER AIR FARES PROBABLY CONTRIBUTED TO THE PICKUP IN TRAIN TRAVEL CONSTRUCTION BOTH AT AIRPORTS AND AT ROADS LEADING TO THEM HELPED AMTRAK TOO PEOPLE ARE JUST GETTING MORE AND MORE TIRED OF ALL THE CONGESTION AN AMTRAK SPOKESMAN SAYS BETTER BUSINESS IN THE TRAVEL INDUSTRY USUALLY MEANS HIGHER PRICES FOR CONSUMERS BUT SO FAR THE HOTEL INDUSTRY HAS BEEN FILLING ROOMS BUT NOT RAISING RATES STARTING LAST YEAR THE INDUSTRY HAS GRADUALLY COME OUT OF ITS WORST SLUMP IN DECADES THROUGH AUGUST THIS YEAR OCCUPANCY RATES ROSE TO 653 FROM 634 IN THE LIKE YEAREARLIER PERIOD ACCORDING TO SMITH TRAVEL RESEARCH GALLATIN TENN AT ITS CURRENT PACE 1993'S OCCUPANCY RATES WOULD BE THE HIGHEST IN ALMOST 10 YEARS BUT ROOM RATES ARE UP ONLY 23 THIS YEAR BELOW BOTH INFLATION AND INDUSTRY EXPECTATIONS AT BEST EXPERTS NOW THINK THAT RATES WILL INCREASE ONLY AT THE RATE OF INFLATION IN 1994 THAT'S BECAUSE MASSIVE OVERBUILDING IN THE HOTEL INDUSTRY IN THE '80S WHICH ALONG WITH THE RECESSION CAUSED THE INDUSTRY'S SLUMP HAS LEFT HOTELS WITH TOO MANY EMPTY ROOMS AT PRESENT AND PROBABLY UNTIL LATER THIS DECADE SO FAR BUSINESS TRAVELERS RATHER THAN TOURISTS ARE THE PEOPLE FILLING UP ROOMS ACCORDING TO SMITH TRAVEL OCCUPANCY RATES HAVE FALLEN SO FAR THIS YEAR IN SUCH VACATION DESTINATIONS AS HONOLULU NEW ORLEANS AND ORLANDO FLA BUT HAVE RISEN IN SUCH BUSINESS MARKETS AS CHICAGO ATLANTA AND WASHINGTON DC THAT TREND IS ANOTHER FACTOR IN KEEPING ROOM RATES DOWN BECAUSE LARGE COMPANIES ARE ABLE TO NEGOTIATE SPECIAL DEALS AND DEMAND LOWER RATES BETTER THAN INDIVIDUAL TRAVELERS UPSET ABOUT THE GROWING NUMBER OF AIRLINES ABRUPTLY YANKING SERVICE FROM SMALL TOWNS CONGRESS IS CONSIDERING A BILL THAT WOULD REQUIRE AIRLINES TO GIVE 60 DAYS' NOTICE BEFORE THEY TERMINATE SERVICE AT AN AIRPORT A SPOKESMAN FOR SEN WENDELL FORD THE KENTUCKY DEMOCRAT WHO PROPOSED THE BILL SAYS THE LEGISLATION IS CURRENTLY IN COMMITTEE NONREFUNDABLE AIRFARES USUALLY FALL IN SEPTEMBER BECAUSE LEISURE TRAVEL DECLINES AND AIRLINES TRY TO REVIVE IT BUT THIS SEPTEMBER THE AVERAGE COST OF NONREFUNDABLE TICKETS ROSE TO 154 FROM 147 ACCORDING TO TOPAZ ENTERPRISES 9310180050 931018 BUSINESS BRIEF COMSAT CORP QUARTERLY PROFIT IS POSTED AFTER LOSS A YEAR EARLIER COMSAT CORP POSTED A THIRDQUARTER PROFIT OF 174 MILLION COMPARED WITH A 64 MILLION LOSS A YEAR EARLIER WHEN THE BETHESDA MD COMPANY TOOK A RESTRUCTURING CHARGE PERSHARE EARNINGS FOR THE COMMUNICATIONS AND ENTERTAINMENT DISTRIBUTION COMPANY WERE 43 CENTS COMPARED WITH A 16 CENTASHARE LOSS IN THE YEAREARLIER PERIOD WHICH INCLUDED A 234 MILLION RESTRUCTURING CHARGE FROM THE COMBINATION OF TWO DIVISIONS SEPARATELY COMSAT SAID ITS MOBILE COMMUNICATIONS GROUP SIGNED AN AGREEMENT FOR INTERNATIONAL MOBILE SATELLITE SERVICES WITH MCI COMMUNICATIONS CORP IS COMPLETING A SIMILAR AGREEMENT WITH AMERICAN TELEPHONE & TELEGRAPH CO AND IS IN DISCUSSION WITH OTHER CARRIERS THE NEW AGREEMENTS LOWER THE RATES FOR SHORETOSHIP COMMUNICATIONS AND WOULD REDUCE EARNINGS PER SHARE BY TWO CENTS OR LESS PER QUARTER IF TRAFFIC REMAINS THE SAME BUT COMSAT SAID THAT SUCH RATE CUTS TEND TO INCREASE TRAFFIC 9310180049 931018 ECONOMY POWER FIRMS WOULD HELP MANAGE DAMS CLINTON PLAN SEEKS TO CUT EMISSION OF GASES THAT CAUSE GLOBAL WARMING BY TIMOTHY NOAH STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE CLINTON ADMINISTRATION WILL PROPOSE AS PART OF ITS EFFORT TO REDUCE EMISSIONS OF GASES THAT CONTRIBUTE TO GLOBAL WARMING THAT POWER COMPANIES HELP MANAGE FEDERAL HYDROELECTRIC PROJECTS OFFICIALS ARGUE THAT THE COMPANIES COULD BRING MORE EFFICIENCY TO THE OPERATION OF FEDERAL DAMS THUS REDUCING THE NEED FOR POWER FROM SOURCES THAT EMIT CARBON DIOXIDE UNDER THE PROPOSAL THE INDEPENDENT POWER COMPANIES WOULD PAY THE FEDERAL GOVERNMENT A CERTAIN SUM AND WOULD ACQUIRE A SHARE OF THE PROFIT FROM RATEPAYERS BUT AN ADMINISTRATION OFFICIAL SAID THE MEASURE MAY PROVE POLITICALLY DICEY WITH LOCAL POWERMARKETING AUTHORITIES THE ADMINISTRATION'S PROPOSALS TO REDUCE SOCALLED GREENHOUSE GASES SET TO BE MADE PUBLIC TOMORROW ALSO WILL INCLUDE A REQUIREMENT THAT AUTOMOBILE TIRES CARRY LABELS INDICATING HOW THEIR TRACTION AFFECTS FUEL EFFICIENCY IN ADDITION THEY WILL CALL FOR ASYET UNSPECIFIED ENERGYEFFICIENCY REQUIREMENTS FOR HOUSEHOLD APPLIANCES AND WILL SUGGEST THAT THE ENVIRONMENTAL PROTECTION AGENCY IMPOSE STRICTER CONTROLS ON METHANE EMISSIONS FROM LANDFILLS BUT OVERALL THE LONGAWAITED PLAN WHICH FOLLOWS THROUGH ON PRESIDENT CLINTON'S PLEDGE LAST APRIL TO REDUCE GREENHOUSE EMISSIONS TO 1990 LEVELS BY THE YEAR 2000 WILL EMPHASIZE VOLUNTARY MEASURES RATHER THAN NEW REGULATORY REQUIREMENTS AS A RESULT IT IS EXPECTED TO WIN ONLY LUKEWARM SUPPORT FROM ENVIRONMENTALISTS VOLUNTARY GOVERNMENT EFFORTS SUCH AS THE EPA'S GREEN LIGHTS PROGRAM WHICH ENCOURAGES BUSINESSES TO USE MORE ENERGYEFFICIENT LIGHTING HAVE PROVEN SURPRISINGLY SUCCESSFUL IN RECENT YEARS BUT ENVIRONMENTALISTS ARE SKEPTICAL THAT SUCH MEASURES WILL BE ENOUGH TO ACHIEVE THE 100MILLIONMETRICTON GREENHOUSEGAS REDUCTIONS NEEDED TO MEET PRESIDENT CLINTON'S PLEDGE THERE'S CLEARLY A LOT OF UNCERTAINTY SAID DAN LASHOFF A SENIOR SCIENTIST AT THE NATURAL RESOURCES DEFENSE COUNCIL AT A NEWS CONFERENCE FRIDAY JOHN SHLAES EXECUTIVE DIRECTOR OF THE INDUSTRYFINANCED GLOBAL CLIMATE COALITION SAID THAT FROM WHAT HE KNOWS OF THE PLAN THE ADMINISTRATION IS FAVORING THE RIGHT APPROACH I THINK VOLUNTARY PROGRAMS MAKE AN AWFUL LOT OF SENSE THE PLAN IS MOST NOTABLE FOR WHAT IT WON'T INCLUDE THE ADMINISTRATION'S PROPOSAL FOR A BROADBASED ENERGY TAX BASED LARGELY ON HEAT CONTENT WHICH WAS THOUGHT LIKELY TO ACHIEVE SIGNIFICANT REDUCTIONS IN CARBON EMISSIONS WAS DISCARDED LAST SUMMER IN THE FACE OF CONGRESSIONAL OPPOSITION SIMILARLY AN EPA BID TO STIFFEN AUTOMOBILE GASOLINEMILEAGE STANDARDS WAS TABLED AS WAS AN AMBITIOUS PLAN TO INCLUDE AUTOINSURANCE PREMIUMS IN THE PRICE OF GASOLINE AT THE PUMP IN ADDITION THE PLAN ISN'T EXPECTED TO EXPLICITLY ALLOW COMPANIES TO COUNT TOWARD TOTAL REDUCTIONS ANY DROP IN GREENHOUSE EMISSIONS ACHIEVED OUTSIDE OF THE US SUCH AN APPROACH WAS INITIALLY FAVORED BY THE ENERGY DEPARTMENT PARTLY BECAUSE IT WOULD BE EASIER FOR BUSINESSES TO ACHIEVE SUBSTANTIAL REDUCTIONS IN CARBON EMISSIONS ABROAD WHERE ENVIRONMENTAL REGULATIONS TEND TO BE MORE LAX BUT SOME ENVIRONMENTALISTS HAVE OPPOSED THIS APPROACH KNOWN AS JOINT IMPLEMENTATION BECAUSE OF ACCOUNTING DIFFICULTIES AND BECAUSE IT MIGHT DISCOURAGE OTHER NATIONS FROM PRESSING AHEAD WITH GREENHOUSEGAS REDUCTION PLANS OF THEIR OWN INSTEAD THE CLINTON PLAN IS EXPECTED TO PROPOSE SOME PILOT PROGRAMS IN JOINT IMPLEMENTATION THAT MAY ALLOW OFFSHORE REDUCTIONS TO BE COUNTED AT SOME LATER DATE THE MOST CONTROVERSIAL ITEM IN THE CLINTON PLAN IS LIKELY TO BE A PROPOSAL CONCERNING BUSINESSES THAT PROVIDE EMPLOYEES WITH FREE PARKING IN LOTS OR GARAGES THAT REQUIRE OTHERS TO PAY UNDER THE PROPOSAL TAX BENEFITS FOR PROVIDING SUCH PARKING WOULD BE CONTINGENT ON OFFERING EMPLOYEES THE EQUIVALENT AMOUNT IN CASH IT IS BELIEVED THAT WOULD DISCOURAGE COMPANIES FROM OFFERING SUCH PARKING SUBSIDIES THUS REDUCING THE NUMBER OF PEOPLE WHO DRIVE TO WORK 9310180048 931018 RECENT SEC FILINGS WASHINGTON THE FOLLOWING ISSUES WERE RECENTLY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION CHILDREN'S DISCOVERY CENTERS OF AMERICA AN OFFERING OF 1343125 CLASS A COMMON SHARES VIA ADVEST INC GERAGHTY & MILLER INC AND HEIDEMIJ NV AN OFFERING OF UP TO 7443710 COMMON SHARES BASED ON A RATIO OF 109 HEIDEMIJ SHARES FOR EACH OF GERAGHTY'S 5813205 SHARES AND 999905 STOCK OPTIONS HS RESOURCES INC TWO SECURITY OFFERINGS ONE FOR 75 MILLION OF SENIOR SUBORDINATED NOTES DUE 2003 AND THE OTHER FOR 1700000 COMMON SHARES VIA A GROUP LED BY LEHMAN BROTHERS NEW YORK TELEPHONE CO A UNIT OF NYNEX CORP A SHELF OFFERING OF 800 MILLION OF DEBT SECURITIES SILICON VALLEY GROUP INC AN OFFERING OF THREE MILLION COMMON SHARES VIA PRUDENTIAL SECURITIES INC AND COWEN & CO 9310180047 931018 BUSINESS BRIEF ETHYL CORP CUT IN SALARIED WORK FORCE IS SLATED CHARGE EXPECTED ETHYL CORP SAID IT PLANS TO TRIM ITS SALARIED WORK FORCE BY ABOUT 155 EMPLOYEES THE RICHMOND VA FUELADDITIVES AND CHEMICAL CONCERN SAID IT EXPECTS TO TAKE A NET THIRDQUARTER CHARGE OF ABOUT 6 MILLION OR FIVE CENTS A SHARE TO COVER COSTS ASSOCIATED WITH THE CUTBACKS ETHYL WHICH CURRENTLY HAS ABOUT 5600 EMPLOYEES WORLDWIDE SAID ABOUT 100 OF THE WORKERS ARE ELIGIBLE FOR AN EARLYRETIREMENT PACKAGE THE JOB CUTS ARE BEING MADE THE COMPANY SAID IN CONJUNCTION WITH ITS PREVIOUSLY ANNOUNCED PLAN TO SPIN OFF ALL ITS SPECIALTY CHEMICALS OPERATIONS AS A SEPARATE COMPANY THAT MOVE WILL LEAVE ETHYL PRIMARILY A MAKER OF FUEL AND LUBRICANT ADDITIVES THE JOB CUTS WILL AFFECT SALARIED EMPLOYEES IN BOTH THE PLANNED SPINOFF AND THE BUSINESS THAT WILL REMAIN A SPOKESMAN SAID 9310180045 931018 CR BARD'S CHAIRMAN AND FIVE OTHERS ARE INDICTED IN HEARTCATHETER SCANDAL BY ELYSE TANOUYE AND GEORGE ANDERS STAFF REPORTERS OF THE WALL STREET JOURNAL THE CHAIRMAN OF CR BARD INC AND FIVE OTHER CURRENT AND FORMER MANAGERS WERE INDICTED FOR THEIR ALLEGED INVOLVEMENT IN A SCANDAL OVER THE COMPANY'S HEARTSURGERY INSTRUMENTS THE JUSTICE DEPARTMENT AND THE FOOD AND DRUG ADMINISTRATION ANNOUNCED THE MURRAY HILL NJ MEDICALDEVICE MAKER WILL PAY A 61 MILLION FINE AND CIVIL PENALTY AFTER AGREEING TO PLEAD GUILTY TO SEPARATE CHARGES ARISING FROM THE SALE OF THE DEVICES THE FINE IS THE LARGEST EVER IN THE HISTORY OF FDA ENFORCEMENT CASES CLOSING WHAT THEY CALLED ONE OF THE LARGEST HEALTHCARE FRAUD INVESTIGATIONS IN HISTORY THE JUSTICE DEPARTMENT AND THE FDA SAID A FEDERAL GRAND JURY IN BOSTON RETURNED A 393COUNT INDICTMENT CHARGING THAT CR BARD'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER GEORGE T MALONEY VIOLATED FEDERAL LAW RELATING TO THE SALE AND DISTRIBUTION OF HEART CATHETERS AMONG THE CHARGES WERE ALLEGATIONS THAT THE SIX EXECUTIVES ILLEGALLY BEGAN HUMAN TRIALS OF CATHETERS USED TO OPEN CLOGGED ARTERIES WITHOUT FEDERAL APPROVAL AND THAT THESE OFFICIALS CONCEALED SERIOUS INJURIES AND PRODUCT MALFUNCTIONS THAT OCCURRED DURING THESE EXPERIMENTS MR MALONEY RESIGNED FRIDAY TO HELP PREPARE HIS DEFENSE THE COMPANY SAID AND WILLIAM H LONGFIELD BARD'S PRESIDENT AND CHIEF OPERATING OFFICER HAS ASSUMED MR MALONEY'S RESPONSIBILITIES MR MALONEY COULDN'T BE REACHED TO COMMENT ALSO INDICTED WERE DAVID PRIGMORE A GROUP EXECUTIVE VICE PRESIDENT OF BARD UNTIL JANUARY 1990 AND JOHN CVINAR PRESIDENT OF BARD'S USCI DIVISION UNTIL DECEMBER 1989 THREE OTHER PEOPLE WHO HAD WORKED IN BARD'S REGULATORYAFFAIRS DEPARTMENT WERE ALSO INDICTED MR PRIGMORE MOST RECENTLY CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OFFICER OF VISION SCIENCES INC OF NATICK MASS RESIGNED THAT POST TO PREPARE HIS DEFENSE ACCORDING TO VISION SCIENCES A MAKER OF INFECTION CONTROL PRODUCTS MR PRIGMORE WASN'T AVAILABLE TO COMMENT A VISION SCIENCES SPOKESMAN SAID MR CVINAR WHO UNTIL LAST YEAR HEADED THE ANGIOPLASTY DIVISION OF DATASCOPE CORP OF MONTVALE NJ COULDN'T BE REACHED TO COMMENT THE PRODUCT INVOLVED IN THE BARD SCANDAL WAS A HEART CATHETER A WIRE WITH A BALLOONLIKE TOP USED TO OPEN CLOGGED ARTERIES THE INSTRUMENTS MADE BY BARD'S USCI DIVISION WERE RECALLED FROM THE MARKET IN 1989 AND 1990 IN THE INDICTMENT THE SIX CURRENT AND FORMER BARD EXECUTIVES WERE CHARGED WITH A WIDE RANGE OF FALSE STATEMENTS AND CONCEALMENT OF MATERIAL FACTS IN ABOUT 50 INSTANCES THE JUSTICE DEPARTMENT SAID THE TIP OF A BARD CATHETER BROKE OFF WITHIN A PATIENT'S CORONARY ARTERY DURING MEDICAL PROCEDURES THE JUSTICE DEPARTMENT SAID THAT IN ABOUT 22 CASES DOCTORS NEEDED TO PERFORM EMERGENCY HEART SURGERY TO REMOVE THE BROKEN TIP IT SAID THAT ONE PATIENT A MISSOURI RESIDENT DIED IN LATE 1988 AND THAT ANOTHER SUFFERED A HEART ATTACK ALL TOLD JUSTICE DEPARTMENT OFFICIALS SAID THE BARD CATHETERS IN QUESTION WERE USED ON ABOUT 22000 PATIENTS BEFORE BEING RECALLED IN 1990 BY ORDER OF THE FDA JUSTICE DEPARTMENT AND FDA OFFICIALS SAID THEY DON'T BELIEVE THAT NEW PATIENTS ARE AT RISK OF BEING TREATED WITH DEFECTIVE CATHETERS THE INDICTMENT CHARGES THAT THE BARD OFFICERS KNEW OF THE PROBLEMS WITH THE INSTRUMENTS YET SENT A LETTER TO PHYSICIANS URGING THEM TO CONTINUE USING THE CATHETER THE JUSTICE DEPARTMENT ALSO CHARGED THAT BARD IN LATE 1987 BEGAN MAKING SOME OF THE CATHETERS IN QUESTION IN HAVERHILL MASS BEFORE GETTING FDA APPROVAL OF THE SITE THE INDICTMENT ALLEGED THAT BARD OFFICIALS AT THE TIME WRONGLY TOLD THE FDA THAT THE CATHETERS WOULD BE MADE AT A DIFFERENT FACILITY IN BILLERICA MASS OF THE 61 MILLION PENALTY THAT BARD HAS AGREED TO PAY IN THE SEPARATE CASE HALF WILL BE A FINE ASSOCIATED WITH THE COMPANY'S GUILTY PLEA TO CHARGES OF MAKING FALSE STATEMENTS IN ITS GOVERNMENT FILINGS THE OTHER 305 MILLION WILL GO TOWARD A SETTLEMENT FUND FOR CIVIL DAMAGE CLAIMS AGAINST BARD IN ADDITION BARD AGREED TO CREATE THE POSITION OF COMPLIANCE COORDINATOR AN INTERNAL WATCHDOG WHO WOULD REPORT DIRECTLY TO BARD'S BOARD THE COMPANY AGREED TO LET THE COMPLIANCE COORDINATOR REVIEW ITS PRODUCT TESTING GOVERNMENT FILINGS AND AUDIT PROGRAMS IN A STATEMENT BARD SAID IT INTENDS TO MAKE A PROVISION FOR THE PROPOSED 61 MILLION SETTLEMENT IN ITS THIRDQUARTER FINANCIAL RESULTS SCHEDULED FOR RELEASE TOMORROW THE PLEA AGREEMENT IS SUBJECT TO APPROVAL BY THE US DISTRICT COURT IN BOSTON HALF THE FINE WILL BE PAID SHORTLY AFTER COURT APPROVAL FOLLOWED BY TWO ANNUAL INSTALLMENTS OF 1525 MILLION EACH ON FRIDAY BARD SHARES CLOSED AT 25 DOWN 125 CENTS IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING THE COMPANY DECLINED TO DISCLOSE THE SIZE OF ITS CURRENT HEART CATHETER OR ANGIOPLASTY BUSINESS BUT JOSEPH FRANCE AN ANALYST AT MERRILL LYNCH ESTIMATED THAT THE USCI DIVISION WILL ACCOUNT FOR ABOUT A THIRD OF BARD'S TOTAL 1993 SALES OF ABOUT 1 BILLION HEARTCATHETER SALES SPECIFICALLY WILL BE ABOUT 135 MILLION HE PREDICTED MR MALONEY'S INDICTMENT WAS A SURPRISE MR FRANCE SAID BUT THE COMPANY'S SETTLEMENT OF THE CHARGES IS VIEWED AS POSITIVE BECAUSE IT REMOVES A MAJOR CLOUD HANGING OVER THE COMPANY HE SAID SUZANNE ALEXANDER CONTRIBUTED TO THIS ARTICLE CR BARD INC AS PART OF A 61 MILLION SETTLEMENT HAS AGREED TO PAY THE US GOVERNMENT 305 MILLION TO SETTLE THE GOVERNMENT'S CIVIL CLAIMS INVOLVING HEART CATHETERS AN ARTICLE YESTERDAY INCORRECTLY REPORTED THAT BARD HAD AGREED TO SET UP A SETTLEMENT FUND FOR CIVIL DAMAGE CLAIMS 9310180044 931018 BUSINESS BRIEF CIT GROUP HOLDINGS INC NET INCOME ROSE NEARLY 13 DURING THE THIRD QUARTER CIT GROUP HOLDINGS INC NEW YORK SAID THIRDQUARTER NET INCOME ROSE NEARLY 13 REFLECTING GROWTH IN ITS MIDDLEMARKET BUSINESSES INCREASED FINANCING OF RECREATIONALVEHICLE SALES AND OTHER FACTORS NET INCOME FOR THE CLOSELY HELD ASSETBASED LENDER WAS 474 MILLION UP FROM 421 MILLION IN THE YEAREARLIER PERIOD CIT IS 60OWNED BY DAIICHI KANGYO BANK LTD OF JAPAN AND 40OWNED BY NEW YORKBASED CHEMICAL BANKING CORP THE THIRDQUARTER RESULTS INCLUDED A 103 MILLION CHARGE FOLLOWING AN INCREASE IN THE TAX RATE AS WELL AS A 99 MILLION AFTERTAX GAIN ON THE SECURITIZATION OF 155 MILLION IN MANUFACTUREDHOUSING RECEIVABLES CIT SAID FOR THE NINE MONTHS EARNINGS WERE UP NEARLY 15 TO 1376 MILLION FROM 1199 MILLION ON HIGHER NETINTEREST INCOME THAT WAS PARTIALLY OFFSET BY AN INCREASE IN THE COMPANY'S PROVISION FOR LOAN LOSSES AND HIGHER OPERATING EXPENSES CIT SAID 9310180043 931018 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN JAPANESE CORPORATE FAILURES IN SEPTEMBER GREW 35 TO 1185 FOR THE SECOND MONTH IN A ROW OF YEARTOYEAR INCREASES RECESSION WAS BLAMED FOR 62 OF THE TOTAL FAILURES EXPANDED FOR 31 CONSECUTIVE MONTHS THROUGH APRIL THEN EASED FOR JUST THREE MONTHS BEFORE PILING UP AGAIN LAST MONTH'S INSOLVENCIES TOPPED 1000 FOR THE EIGHTH STRAITH THOUGH DEBTS LEFT BEHIND DROPPED 38 TO 405 BILLION FROM A YEAR EARLIER IN THE FISCAL FIRST HALF ENDED SEPT 30 FAILURES SLIPPED 06 TO 6913 BUT AN INCREASE IN THE NUMBER OF LARGER COMPANIES THAT COLLAPSED CAUSED A CHAIN REACTION OF SMALLER INSOLVENCIES RECOVERY FROM JAPAN'S PROLONGED SLUMP APPEARS TO BE SERIOUSLY DELAYED TEIKOKU DATABANK LTD A PRIVATE CREDIT RESEARCH AGENCY SAID A BIG DROP IN CONSTRUCTION AND MACHINERY ORDERS CONTINUES CAPITAL SPENDING IS COOLING PERSONAL CONSUMPTION REMAINS SLUGGISH AND EFFORTS TO REDUCE EXCESS INVENTORIES HAVE STALLED PRESSURING JOBS CORPORATE SENTIMENT HURT BY THE STRONG YEN AND ERODING EXPORTS IS WORSENING CHINA WILL WEAN ITS LAWYERS FROM STATE FUNDING BUT WON'T LET THEM WORK INDEPENDENTLY OF THE GOVERNMENT JUSTICE MINISTER XIAO YANG SAID BEIJING PLANS TO REFORM THE LEGAL SYSTEM MAKING LAW FIRMS RESPONSIBLE FOR THEIR OWN EARNINGS AND LOSSES STAFFING MANAGEMENT AND DEVELOPMENT UNDER THE CURRENT SYSTEM LAW FIRMS RECEIVE GOVERNMENT FUNDING AND THE GOVERNMENT DESIGNATES WHERE LAW SCHOOL GRADUATES WORK LAWYERS ALSO ARE SUBJECT TO GOVERNMENT CONTROLS SUCH AS WHAT CASES THEY CAN HANDLE AND HOW TO CONDUCT THEM MR XIAO SAID CHINA DOESN'T INTEND TO OPEN ITS COURTROOMS TO FOREIGN OBSERVERS REFLECTING HARD TIMES IN THE WORLD AEROSPACE INDUSTRY THE PARIS AIR SHOW'S 1995 EVENT WILL BE SHORTENED TO 8 DAYS FROM 10 COMPANIES COMPLAINED ABOUT MULTIMILLIONDOLLAR EXHIBITION COSTS IN PARIS AMID A PROLIFERATION OF AIR SHOWS WORLDWIDE COMPETING FOR AEROSPACE MARKETING DOLLARS WHILE ORDERS ARE DWINDLING AND THE INDUSTRY IS HAVING TO RESTRUCTURE PARIS HOLDS ITS SHOW THE WORLD'S BIGGEST IN ODD YEARS ALTERNATING WITH EVENYEAR EVENTS IN FARNBOROUGH ENGLAND ALREADY SHRUNK FOR NEXT YEAR TO 7 DAYS FROM 8 CRIME IN JAPAN MARKED A POSTWORLD WAR II HIGH IN 1992 FOR THE SECOND YEAR IN A ROW REPORTED FELONY AND MISDEMEANOR OFFENSES INCREASED 31 TO 24 MILLION FROM A YEAR EARLIER THEFTS ACCOUNTED FOR 65 OF THE TOTAL MURDERS EDGED UP 1 BUT ARMED ROBBERIES JUMPED 19 PARTLY ATTRIBUTED TO THE RECESSION CRIMES EXCLUDING TRAFFICRELATED OFFENSES ROSE 2 TO 17 MILLION ALSO A POSTWAR RECORD BUT ARRESTS FELL 37 TO A POSTWAR LOW OF 284908 RADIOACTIVE CONTAMINATION IS UNCONTROLLED IN THE FORMER SOVIET UNION AND WITH STORAGE SITES MOSTLY FULL SOME LIQUID NUCLEAR WASTE IS BEING DUMPED INTO RIVERS THE UNITED NATIONS DEVELOPMENT PROGRAM AND THE INTERNATIONAL ATOMIC ENERGY AGENCY SAID THE UN AGENCIES BASED THEIR REPORT ON A MAY FORUM IN VIENNA WHERE MEMBERS OF THE COMMONWEALTH OF INDEPENDENT STATES DISCLOSED THE SCOPE OF THE PROBLEMS AGGRAVATED BY ECONOMIC HARDSHIPS AND CHAOTIC ATTEMPTS TO SHIFT TO A MARKET ECONOMY ONLY RUSSIA AND UKRAINE HAVE NUCLEAR REGULATORS IN ITS MOVE TO DISCONTINUE CURRENCY WITH MARKINGS OF THE SOCIALIST REGIME THAT WAS OVERTHROWN IN DECEMBER 1989 ROMANIA BEGAN WITHDRAWING FROM CIRCULATION 100LEU BANKNOTES ISSUED SINCE 1966 THE BILLS WERE MADE OBSOLETE BY INFLATION RUNNING AT AN ANNUAL RATE OF 200 IN THE BUMPY TRANSITION FROM A CENTRALIZED ECONOMY A DOLLAR EQUALS 963 LEI MONTHLY AVERAGE SALARIES HAVE SOARED 35FOLD IN FOUR YEARS TO 70000 LEI 73 COMMITMENTS FROM ABROAD TO INVEST IN CHINA THIS YEAR COULD DOUBLE TO 100 BILLION FROM A YEAR EARLIER AS MULTINATIONAL COMPANIES POUR INTO THE COUNTRY THE GOVERNMENT'S FOREIGN TRADE AGENCY SAID LAST YEAR THE CONTRACTED TOTAL SOARED FIVEFOLD FROM 1991 TO 57 BILLION OF WHICH 11 BILLION WAS ULTIMATELY INVESTED MEANWHILE THE GOVERNMENT SAID GROWTH IN CHINA'S 1993 GROSS DOMESTIC PRODUCT PROBABLY WILL MATCH LAST YEAR'S RATE OF 132 BECAUSE AN AUSTERITY PLAN INTRODUCED IN JULY HASN'T CAUSED ECONOMIC DEVELOPMENT TO DIVE STEEPLY AS DID SIMILAR MEASURES FIVE YEARS AGO IN THIS YEAR'S FIRST NINE MONTHS GDP GALLOPED 13 FROM A YEAR EARLIER INDUSTRIAL OUTPUT CLIMBED 24 AND INVESTMENT IN FIXED ASSETS EXPLODED 60 WHEN INDUSTRIAL GROWTH HIT A RECORD 30 IN JUNE BEIJING CRACKED DOWN TO REDUCE INFLATION AND CURB SPECULATION IN PROPERTY AND STOCKS BUT CREDIT RESTRICTIONS RECENTLY WERE EASED IN RESPONSE TO COMPLAINTS OF THE RESULTING SLOWDOWN IN PRODUCTION RUSSIA FREED BREAD PRICES SCRAPPING ONE OF THE LAST BIG SUBSIDIES INHERITED FROM THE CENTRALIZED PLANNING OF THE SOVIET ERA A LOAF OF BREAD NOW SELLS FOR ABOUT 12 CENTS MOSCOW ALSO TRIPLED THE PRICE OF A SUBWAY RIDE TO ABOUT THREE CENTS JAPAN'S ENVIRONMENTAL AGENCY SURVEYED 188 CITIES AND TOWNS AND FOUND 45 CASES IN WHICH TWO CANCERCAUSING INDUSTRIAL CHEMICALS USED IN CLEANING INTEGRATED CIRCUITS AND DRY CLEANING SEEPED INTO THE SOIL AND POISONED UNDERGROUND WATER BUT LEAD REMAINED THE PRIMARY CAUSE OF POLLUTION 9310180042 931018 BUSINESS BRIEF ARK RESTAURANTS CORP SLIGHT INCREASE IN NET INCOME TO BE REPORTED FOR QUARTER ARK RESTAURANTS CORP NEW YORK EXPECTS TO REPORT SLIGHTLY HIGHER EARNINGS FOR ITS FISCAL FOURTH QUARTER AND ABOUT A 20 INCREASE IN EARNINGS FOR ITS FISCAL YEAR THE COMPANY WHICH OWNS OR OPERATES 26 RESTAURANTS PRIMARILY IN THE NORTHEAST EXPECTS TO REPORT THAT EARNINGS IN THE QUARTER ENDED OCT 2 ROSE TO ABOUT 18 CENTS A SHARE OR A TOTAL OF ABOUT 576000 IN THE YEARBEFORE QUARTER ARK HAD NET INCOME OF 17 CENTS A SHARE OR 539000 WHICH INCLUDED AN EXTRAORDINARY CREDIT OF TWO CENTS A SHARE OR 73000 FROM A TAXLOSS CARRYFORWARD ARK EXPECTS A SIMILAR CREDIT THIS YEAR FOR THE FISCAL YEAR JUST ENDED ARK EXPECTS TO REPORT NET ROSE TO ABOUT 60 CENTS A SHARE OR 19 MILLION FROM 50 CENTS A SHARE OR 15 MILLION A YEAR EARLIER WHEN THERE WERE FEWER SHARES THE ESTIMATES CAME IN AN INTERVIEW WITH ARK'S PRESIDENT AND CHIEF EXECUTIVE OFFICER MICHAEL WEINSTEIN 9310180041 931018 BUSINESS BRIEF ROHM & HAAS CO THIRDPERIOD LOSS TO REFLECT 50 MILLION SPECIAL CHARGES ROHM & HAAS CO PHILADELPHIA SAID IT EXPECTS TO REPORT A LOSS FOR ITS THIRD QUARTER AFTER TAKING CHARGES TOTALING 50 MILLION OR 74 CENTS A SHARE THE SPECIALTY CHEMICALS COMPANY SAID THE CHARGES INCLUDE AN ACCRUAL FOR A LANDFILL IN NEW JERSEY AND A WRITEDOWN OF A PLASTICS PLANT IN KENTUCKY IT SAID IT EXPECTS TO REPORT THIRDQUARTER RESULTS TOMMOROW EXCLUDING THE CHARGES AND THE WRITEDOWN PERSHARE EARNINGS ARE EXPECTED TO BE 40 CENTS TO 45 CENTS COMPARED WITH 72 CENTS IN THE 1992 THIRD QUARTER WHEN NET INCOME WAS 522 MILLION IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING FRIDAY ROHM SHARES FELL 1875 TO CLOSE AT 47875 THE COMPANY ALSO SAID IT WILL RESTATE FIRSTQUARTER EARNINGS TO REFLECT AN AFTERTAX CHARGE OF 20 MILLION RELATED TO A CHANGE IN ACCOUNTING FOR EMPLOYEE BENEFITS 9310180040 931018 BUSINESS BRIEF GENERAL SIGNAL CORP ACQUISITION IS COMPLETED OF REVCO SCIENTIFIC INC GENERAL SIGNAL CORP STAMFORD CONN SAID IT COMPLETED THE PURCHASE OF REVCO SCIENTIFIC INC FOR 85 MILLION IN STOCK REVCO WHICH MAKES ULTRALOW TEMPERATURE FREEZERS AND LABORATORY REFRIGERATORS AMONG OTHER THINGS WILL BE MERGED INTO GENERAL SIGNAL'S LINDBERG UNIT WHICH MAKES LABORATORY FURNACES AND OVENS AND INDUSTRIAL HEATTREATING EQUIPMENT THE NEW UNIT IS EXPECTED TO HAVE 1994 SALES OF ABOUT 110 MILLION AND WILL BE BASED IN ASHEVILLE NC GENERAL SIGNAL IN THE CURRENT QUARTER WILL TAKE A TRANSACTION CHARGE OF 23 MILLION AND A CONSOLIDATION CHARGE OF 8 MILLION FOR COMBINING THE TWO BUSINESSES GENERAL SIGNAL WHICH MAKES EQUIPMENT AND INSTRUMENTS FOR THE PROCESS CONTROL ELECTRICAL AND INDUSTRIAL TECHNOLOGY INDUSTRIES WILL ACCOUNT FOR THE TRANSACTION AS A POOLING OF INTERESTS 9310180039 931018 NEW STOCK LISTINGS NEW YORK THE NEW YORK STOCK EXCHANGE ANNOUNCED SEVEN NEW LISTINGS INCLUDING FOUR INITIAL PUBLIC OFFERINGS THE NATIONAL ASSOCIATION OF SECURITIES DEALERS ANNOUNCED 17 NEW LISTINGS FOR ITS NATIONAL MARKET SYSTEM INCLUDING 11 INITIAL OFFERINGS AND THE AMERICAN STOCK EXCHANGE ANNOUNCED FOUR NEW LISTINGS INCLUDING THREE INITIAL OFFERINGS THE BIG BOARD BEGAN TRADING SHARES IN THE FOLLOWING INITIAL OFFERINGS BOYD GAMING CORP LAS VEGAS A CASINO ENTERTAINMENT COMPANY UNDER BYD MCARTHUR/GLEN REALTY CORP MCLEAN VA A REAL ESTATE INVESTMENT TRUST UNDER MCG NEW AGE MEDIA FUND INC BALTIMORE A MANAGEMENT INVESTMENT COMPANY UNDER NAF AND OASIS RESIDENTIAL INC HENDERSON NEV AN OPERATOR OF MULTIFAMILY APARTMENTS UNDER OAS THE FOLLOWING TWO COMPANIES JOINED THE BIG BOARD AFTER TRADING OVERTHECOUNTER GERRITY OIL & GAS CORP DENVER COLO AN OIL & GAS CONCERN UNDER GOC AND NATIONAL DATA CORP ATLANTA A DATA PROCESSING COMPANY UNDER NDC MATERIAL SCIENCES CORP ELK GROVE VILLAGE ILL A MAKER OF COATED AND LAMINATED MATERIALS UNDER MSC MATERIAL SCIENCES PREVIOUSLY TRADED ON THE AMEX THE NATIONAL MARKET SYSTEM OF THE OVERTHECOUNTER MARKET ADDED THE FOLLOWING INITIAL OFFERINGS FIRST SOUTHEAST FINANCIAL CORP ANDERSON SC A COMPANY FORMED TO ACQUIRE THE OUTSTANDING STOCK OF FIRST FEDERAL SAVINGS & LOAN ASSOCIATION UNDER FSFC MICRO COMPONENT TECHNOLOGY INC ST PAUL MINN A MAKER OF TEST EQUIPMENT FOR THE SEMICONDUCTOR INDUSTRY UNDER MCTI ALADDIN KNOWLEDGE SYSTEMS LTD TEL AVIV A SOFTWARE SECURITY CONCERN UNDER ALDNF KOALA CORP DENVER A MAKER AND MARKETER OF INFANT AND CHILD PROTECTION PRODUCTS UNDER KARE MERCHANTS BANCORP INC AURORA ILL A BANK HOLDING COMPANY UNDER MBIA NVIRO INTERNATIONAL CORP TOLEDO OHIO AN OWNER OF TECHNOLOGY TO TREAT AND RECYCLE WASTE WATER SLUDGES AND OTHER BIOORGANIC WASTES UNDER NVIC FRISCO BAY INDUSTRIES OF CANADA LTD ST LAURENT QUEBEC A DEVELOPER OF SYSTEMS AND SERVICES FOR BANKS UNDER FBAYF THE CLASS A COMMON SHARES OF INSIGNIA FINANCIAL GROUP INC GREENVILLE SC A REAL ESTATE CONCERN UNDER IFGI OM GROUP INC CLEVELAND A MAKER AND MARKETER OF METALBASED SPECIALTY CHEMICALS UNDER OMGI THE CLASS A THE FOLLOWING COMPANIES JOINED THE NATIONAL MARKET SYSTEM FROM THE NASDAQ SMALLCAP MARKET BIG ROCK BREWERY LTD CALGARY ALBERTA CANADA A SPECIALTY BEER PRODUCER UNDER BEERF ENVIROFIL INC RADNOR PA A SOLID WASTE MANAGEMENT COMPANY UNDER EFIL SHARED TECHNOLOGIES INC WETHERSFIELD CONN A PROVIDER OF SHARED TENANT SERVICES TO MULTITENANT OFFICE BUILDINGS UNDER STCH AND BELIZE HOLDINGS INC BELIZE CITY BELIZE A BANKING AND FINANCIAL SERVICES CONCERN UNDER BZHKF TEECOMM ELECTRONICS INC MILTON ONTARIO CANADA A MAKER OF SATELLITE TELEVISION EQUIPMENT UNDER TENXF TEECOMM FORMERLY TRADED ON THE AMEX RHNB CORP ROCK HILL SC A BANK HOLDING COMPANY FORMERLY TRADED ON THE PINK SHEETS AND NOW TRADES ON THE NATIONAL MARKET SYSTEM UNDER RHNB THE AMEX BEGAN TRADING SHARES IN THE FOLLOWING INITIAL OFFERINGS COMMERCIAL ASSETS INC DENVER A REAL ESTATE CONCERN UNDER CAX APROGENEX INC HOUSTON A MAKER OF EQUIPMENT THAT IDENTIFIES GENETIC ABNORMALITIES AND DISEASE UNDER APG AND VAN KAMPEN MERRITT ADVANTAGE MUNICIPAL INCOME TRUST II OAKBROOK TERRACE ILL UNDER VKI SIMULA INC PHOENIX A MAKER OF AIRCRAFT EQUIPMENT PREVIOUSLY TRADED OVERTHECOUNTER NOW TRADES ON THE AMEX UNDER SMU THE CHICAGO BOARD OPTIONS EXCHANGE BEGAN TRADING OPTIONS IN THE FOLLOWING COMPANIES INFINITY BROADCASTING CO AND QUALMED INC THE CHICAGO STOCK EXCHANGE BEGAN TRADING SHARES IN AAR CORP ELK GROVE VILLAGE ILL A SUPPLIER OF PRODUCTS AND SERVICES TO THE AIRLINES INDUSTRY UNDER AIR 9310180037 931018 TWOWAY TRAFFIC A NEW EXPORT POWER IN THE AUTO INDUSTRY IT'S NORTH AMERICA THOUGH STILL TRAILING JAPAN US AND CANADIAN PLANTS ARE POSTING MAJOR GAINS THE NEW ATTITUDE IN DETROIT BY DOUGLAS LAVIN AND AUDREY CHOI STAFF REPORTERS OF THE WALL STREET JOURNAL AT THE TOKYO MOTOR SHOW THIS WEEK THERE WILL BE THE USUAL ALLEGATIONS FROM AROUND THE WORLD ABOUT UNFAIR JAPANESE TRADING PRACTICES SOME AMERICAN AUTO EXECUTIVES WILL PROBABLY COMPLAIN ABOUT BEING FENCED OUT OF JAPAN AND THE EUROPEANS HAVE ALREADY SCHEDULED A NEWS CONFERENCE TO ASSAIL JAPANESE EXPORTS TO EUROPE DESPITE ALL THAT GUESS WHAT A NEW EXPORT POWER IS QUIETLY STEPPING INTO THE GLOBAL CAR WARS NORTH AMERICA WITHIN THE NEXT FIVE YEARS ALMOST ONE MILLION AMERICAN AND CANADIANMADE CARS AND TRUCKS A YEAR WILL BE ROLLING ONTO SHIPS BOUND FOR EUROPE ASIA AND LATIN AMERICA FORD MOTOR CO ESTIMATES THAT WOULD BE A PHENOMENAL SURGE FROM 1986 WHEN NORTH AMERICA EXPORTED ONLY 48000 VEHICLES THIS YEAR EXPORTS ARE EXPECTED TO HIT 480000 ALREADY A TENFOLD INCREASE ALTHOUGH NORTH AMERICA STILL CAN'T MATCH JAPAN WHICH EXPORTED ABOUT 56 MILLION VEHICLES LAST YEAR THE BULLISH OUTLOOK DOES REPRESENT A SEA CHANGE WITH MAJOR ECONOMIC RAMIFICATIONS BUILDING ANOTHER HALFMILLION VEHICLES FOR EXPORT WOULD REQUIRE TWO ASSEMBLY PLANTS EMPLOYING ABOUT 5000 WORKERS PLUS MORE THAN 50000 ADDITIONAL JOBS AT SUPPLIER COMPANIES AND EXPORTING THEM WOULD SLASH THE NORTH AMERICAN TRADE DEFICIT BY SOME 6 BILLION WHAT'S BEHIND THE CHANGE IN PART THE WEAK DOLLAR THAT'S ONE REASON JAPANESE AND GERMAN AUTO MAKERS ARE PLANNING TO BUILD MORE VEHICLES IN THE US AND EXPORT THEM MOREOVER THE INTENSE COMPETITION IN THIS MARKET HAS MADE NORTH AMERICAN PLANTS AMONG THE MOST PRODUCTIVE IN THE WORLD AND LED BY A NEW GENERATION OF INTERNATIONALLY TRAINED EXECUTIVES DETROIT'S BIG THREE HAVE BROADENED THEIR HORIZONS TARGETING NEW MARKETS WITH MORECOMPETITIVE PRODUCTS THIS IS AN ECONOMIC PHENOMENON SAYS STEPHEN ROACH A SENIOR ECONOMIST AT MORGAN STANLEY & CO IT'S NOT JUST A FLASH IN THE PAN THE CHANGE CAN BE SEEN IN THE LATEST NEWCAR PURCHASE BY WERNER KUEHNLY A 52YEAROLD GERMAN ENTREPRENEUR LIKE MANY SUCCESSFUL GERMANS HE WORKED HIS WAY UP FROM A VOLKSWAGEN TO A BMW TO A MERCEDESBENZ NOW HE HAS A USBUILT FORD EXPLORER IT'S A GOOD COMBINATION OF A RELIABLE LONGLASTING CAR THAT IS COMFORTABLE AND HAS A MUCH BETTER QUALITYPRICE RELATIONSHIP THAN A JAPANESE CAR OR A MERCEDES HE SAYS TO BE SURE NORTH AMERICA'S EXPORT PROSPECTS AREN'T UNLIMITED NEITHER FORD NOR GENERAL MOTORS CORP WANTS TO EXPORT SO MANY VEHICLES TO EUROPE THAT THEY HURT THEIR OWN SIZABLE OPERATIONS THERE WHILE THE JAPANESE ARE EXPORTING SOME VEHICLES FROM NORTH AMERICA THEIR HOME PLANTS ARE STILL LIKELY TO GET THE BULK OF THE TRADE LONGTERM WITH AN ESTIMATED 10 MILLION TO 12 MILLION UNITS OF EXCESS CAPACITY IN THE GLOBAL AUTO INDUSTRY EXPORT COMPETITION IS FIERCE AUTO MANUFACTURING IS VIEWED AS ECONOMICALLY STRATEGIC WORLDWIDE MAKING SOME PROTECTIONISM INEVITABLE AND IF THE NORTH AMERICAN FREE TRADE AGREEMENT GOES INTO EFFECT A SIGNIFICANT PORTION OF FUTURE EXPORTS FROM NORTH AMERICA MAY COME FROM MEXICO IN THE NEAR TERM THOUGH MOST OF THE INCREASE IN SHIPMENTS IS EXPECTED TO BE FROM US AND CANADIAN PLANTS IN 1992 FOR THE FIRST TIME IN YEARS THE BIG THREE THEMSELVES BECAME NET VEHICLE EXPORTERS FOR MUCH OF THE 1980S EVEN AS DETROIT COMPLAINED ABOUT JAPANESE IMPORTS GM FORD AND CHRYSLER CORP SOLD AS MANY AS 400000 JAPANESEMADE VEHICLES A YEAR IN NORTH AMERICA UNDER THE US COMPANIES' NAMEPLATES AT THE SAME TIME AS THE JAPANESE STEPPED UP PRODUCTION IN NORTH AMERICA AT THEIR TRANSPLANT OPERATIONS TOTAL AUTO IMPORTS PLUMMETED TO 23 MILLION VEHICLES LAST YEAR FROM 41 MILLION IN 1986 YET THE UNITED AUTO WORKERS UNION AUTOSTATE POLITICIANS AND EVEN BIG THREE EXECUTIVES CONTINUE TO CRITICIZE THE JAPANESE FOR IMPERILING AMERICAN JOBS THE EXCHANGERATE AND THE QUALITY BATTLE HAVE SHIFTED SO QUICKLY THAT THE POLITICAL DISCUSSION HASN'T CAUGHT UP WITH IT SAYS J FERRON A VICE PRESIDENT OF JD POWER & ASSOCIATES AN AUTOMOTIVECONSULTING FIRM INDEED FOREIGN AUTO MAKERS ARE HURRYING TO BUILD CAR PLANTS IN THE US DAIMLERBENZ AG'S DECISION IN SEPTEMBER TO BUILD A NEW MERCEDESBENZ PLANT NEAR TUSCALOOSA ALA FOLLOWED BAYERISCHE MOTOREN WERKE AG'S MOVE TO ASSEMBLE BMWS IN SOUTH CAROLINA TOYOTA MOTOR CO IS DOUBLING THE CAPACITY OF ITS GEORGETOWN KY ASSEMBLY PLANT ALL THREE INTEND TO USE THEIR US OPERATIONS AS EXPORT BASES HONDA MOTOR CO ALREADY EXPORTS ACCORD WAGONS TO EUROPE FROM MARYSVILLE OHIO AT THE SAME TIME AMERICAN CAR MAKERS ARE GOING AFTER MORE EXPORT VOLUME AND THEY ARE GETTING SOME HELP CONRAIL AND SOME EAST COAST PORTS ARE SPENDING A TOTAL OF ABOUT 10 MILLION TO FACILITATE SHIPMENTS FROM NORTH AMERICAN AUTO PLANTS AT PRESENT GM VEHICLES BUILT FOR EXPORT ARE DRIVEN FROM A RAIL PLATFORM NEAR GIANTS STADIUM IN NORTHERN NEW JERSEY TO NEWARK SOON A RAIL LINE WILL TAKE THEM RIGHT TO THE DOCK GM IS DESIGNING ITS NEXT MINIVAN FOR SALE IN EUROPE AS AN OPEL ITS NAMEPLATE ON THE CONTINENT AT THE DORAVILLE GA PLANT THAT PROBABLY WILL BUILD IT AS MUCH AS 30 OF THE OUTPUT IS SAID TO BE DESTINED FOR EXPORT GM ALSO IS DISCUSSING PLANS TO EXPORT CHEVROLETS AND PONTIACS TO JAPAN FOR SALE UNDER THE TOYOTA NAME AND PLANS TO BUILD RIGHTHANDDRIVE CHEVY PICKUPS FOR INDONESIA FORD'S NEXT MINIVAN IS BEING DESIGNED FOR THE HIGH SPEEDS OF GERMAN AUTOBAHNS AND CHRYSLER ENGINEERS ARE DRAWING A RIGHTHANDDRIVE VERSION OF THEIR NEXT MINIVAN BOTH FORD AND CHRYSLER ARE TOOLING UP TO BUILD RIGHTHANDDRIVE CARS FOR BRITAIN JAPAN AND AUSTRALIA IN FLAT ROCK MICH THE AUTOALLIANCE PLANT JOINTLY OWNED BY FORD AND MAZDA MOTOR CORP IS EXTENDING ITS ASSEMBLY LINE TO ACCOMMODATE THE RIGHTHANDDRIVE PRODUCTION OF FORD PROBES THE CAR DESIGNED WITH MAZDA'S HELP WILL BE THE FIRST NORTH AMERICANBUILT RIGHTHANDDRIVE FORD IN DECADES EVEN THOUGH FORD IS THE MARKET LEADER IN THE UK AND NO 2 IN AUSTRALIA WITHIN THREE YEARS US FORD PLANTS ALSO WILL BE BUILDING RIGHTHANDDRIVE TAURUSES AND EXPLORERS THE ADDITIONAL TIME NEEDED TO MAKE THE RIGHTHANDDRIVE PROBE AND EQUIP IT FOR EXPORT FOUR MINUTES WE DON'T JUST DESIGN FOR CALIFORNIA WE DESIGN FOR THE WORLD SAYS DONALD COOK VICE PRESIDENT SALES AT FORD OF EUROPE THAT'S VERY DIFFERENT THAN 10 YEARS AGO WHEN WE WOULD WAIT TILL AFTER THE FACT AND THEN RUN AROUND TRYING TO PUT THINGS ON DESPITE THE 10 TARIFF SLAPPED ON THE PROBE WHEN IT ARRIVES IN EUROPE IT WILL SELL FOR ABOUT THE SAME PRICE AS COMPARABLE EUROPEAN CARS THAT'S BECAUSE IN NORTH AMERICA FORD USES HALF AS MUCH LABOR TO BUILD A CAR AS IT DID IN THE 1970S EUROPEAN AUTO MAKERS INCLUDING FORD'S OWN EUROPEAN OPERATIONS ARE STRUGGLING TO REDESIGN ASSEMBLY OPERATIONS THAT ARE 50 LESS EFFICIENT THAN FORD'S BEST IN THE US MOREOVER FORD AND THE OTHER AMERICAN CAR MAKERS ARE BUILDING BETTER CARS THAN THEY ONCE DID TOYOTA CONTINUES TO DOMINATE JD POWER'S US QUALITY SURVEYS BUT THE FORD NAMEPLATE DOES SIGNIFICANTLY BETTER THAN BMW AUDI MITSUBISHI MAZDA AND VOLKSWAGEN THE KIND OF CARS AVAILABLE FOR EXPORT FROM NORTH AMERICA ALSO HAS CHANGED NOT SO LONG AGO AMERICA COULDN'T BUILD A COMPETITIVE SMALL CAR VW BEETLES AND THEN RABBITS POURED INTO THE US AND VINYLTOPPED GASGUZZLING AMERICAN CARS WERE EITHER A CURIOSITY OR A JOKE OVERSEAS THIS YEAR CHRYSLER HAS EXPORTED MORE VEHICLES TO EUROPE THAN THE VOLKSWAGEN AG GROUP INCLUDING AUDI HAS SOLD IN THE US WHAT CHRYSLER HAS TO OFFER ARE SUCH WORLDCLASS COMPETITORS AS THE JEEP GRAND CHEROKEE AND THE CHRYSLER CONCORDE SEDAN CHRYSLER'S NEW SMALL CAR THE NEON RECEIVED FAVORABLE REVIEWS IN EUROPE AND JAPANESE DISTRIBUTORS ARE CLAMORING FOR IT WHILE MANY AUTO MAKERS RANGING FROM VW TO NISSAN MOTOR CO WILL POST LOSSES THIS YEAR CHRYSLER COULD WELL BE THE WORLD'S MOST PROFITABLE AUTO MAKER BOTH THE PROBE AND THE NEON ARE PRODUCTS OF DETROIT'S CUTTHROAT COMPETITION AGAINST THE JAPANESE THE CARS ARE FUELEFFICIENT FRONTWHEELDRIVE MODELS POWERED BY MULTIVALVE ENGINES THE KIND OF CAR AMERICANS USED TO BUY FROM A TOYOTA DEALER THE PROBE GREW OUT OF FORD'S PARTNERSHIP WITH MAZDA THE NEON WAS DEVELOPED AFTER CHRYSLER REMADE ITSELF IN HONDA'S IMAGE WHAT'S MORE THE BIG THREE HAVE UNDERGONE A PERSONALITY CHANGE NO LONGER ARE THEY CREATURES OF THE MIDWEST FORD RECENTLY NAMED A SCOT ALEXANDER J TROTMAN TO BECOME ITS CHIEF EXECUTIVE OFFICER AN UNTHINKABLE MOVE A GENERATION AGO AT CHRYSLER CHAIRMAN ROBERT J EATON PREVIOUSLY HEADED GM EUROPE CHRYSLER'S CHIEF ENGINEER FRANCOIS J CASTAING IS FRENCH AND PRESIDENT ROBERT A LUTZ THE SON OF A SWISS BANKER LIKES TO TELL EUROPEAN JOURNALISTS IN FLUENT FRENCH OR GERMAN ABOUT THE TURNAROUND HE HELPED ENGINEER GM'S CHIEF EXECUTIVE JOHN F SMITH JR MET HIS WIFE IN ZURICH WHILE HEADING GM EUROPE NONETHELESS THE BIG THREE CHIEFS ARE STILL PUSHING FOR MANAGED TRADE WITH JAPAN TOP FORD AND CHRYSLER EXECUTIVES WILL POUND AWAY AT THE ISSUE OF ACCESS TO JAPANESE MARKETS THIS WEEK IN TOKYO WE'VE OBSESSED A LITTLE BIT ON JAPAN SAYS THOMAS J DUESTERBERG AN ASSISTANT SECRETARY OF COMMERCE FOR INTERNATIONAL ECONOMIC POLICY IN THE BUSH ADMINISTRATION IT'S A BIG MARKET BUT IT'S GROWING SLOWLY ONLY RECENTLY HAVE THE BIG THREE BEGUN TO SHIFT THEIR FOCUS FROM SELLING IN JAPAN TO COMPETING ON AN EQUAL FOOTING WITH THE JAPANESE IN THE EMERGING MARKETS OF SOUTHEAST ASIA AND CHINA FORD SAYS IT IS OPENING THREE DEALERSHIPS IN CHINA AND EARLY THIS MONTH IT MOVED ITS MIDEAST SALES OFFICE TO DUBAI FROM DEARBORN GM HAS MOVED ITS SOUTHEAST ASIA OFFICE TO SINGAPORE FROM DETROIT ANYWAY MR DUESTERBERG SAYS HAMMERING AWAY AT THE NEGOTIATING TABLE WITH THE JAPANESE MAY NO LONGER BE NECESSARY DETROIT IS IN A MUCH BETTER POSITION TO COMPETE ON QUALITY IT DOESN'T NEED TO RELY ON TRADE POLICY THAT GIVES ACCESS TO A MARKET BY DINT OF FORCE HE SAYS FOR EUROPEAN AND JAPANESE AUTO MAKERS MORE EXPORT COMPETITION FROM NORTH AMERICA WILL BE BAD NEWS ALREADY EUROPE'S PRODUCERS ARE UNDER INTENSE PRESSURE FROM THE JAPANESE AND FROM A PLUNGING MARKET THE CURRENT RECESSION IN EUROPE IS WIPING OUT CAR SALES EQUIVALENT TO THE ENTIRE PRODUCTION OF ONE OF EUROPE'S BIG SIX CAR MAKERS THE ABSENCE UNTIL LATELY OF SERIOUS OUTSIDE COMPETITION HAS LEFT THE INDUSTRY WOEFULLY UNPREPARED EUROPEANS ARE PAYING STUPIDLY HIGH CAR PRICES SAYS PETER SCHMIDT JOINT MANAGING DIRECTOR OF AUTOMOTIVE INDUSTRY DATA LTD A UK CONSULTING CONCERN THAT MAKES EUROPE PARTICULARLY RIPE FOR MORE NORTH AMERICAN EXPORTS HE SAYS ADDING THE DAY OF RECKONING HAS ARRIVED MEANWHILE JAPANESE MANUFACTURERS' SHIFT IN STRATEGY IS HAVING RAMIFICATIONS AT HOME IN 1986 TOYOTA EXPORTED MORE THAN A MILLION VEHICLES TO THE US THIS YEAR IT WILL EXPORT JUST 525000 TO THE US AND WILL BUILD 50000 VEHICLES IN NORTH AMERICA FOR SALE IN JAPAN ELSEWHERE IN ASIA AND IN EUROPE BY ABOUT 1996 IT WILL BE EXPORTING ROUGHLY 425000 VEHICLES TO THE US AND BUILDING ABOUT 90000 IN NORTH AMERICA FOR EXPORT TOYOTA SAYS AND US EXPORTS ARE RISING DESPITE THE SLUMP IN THE CAR MARKETS OF EUROPE AND JAPAN IN THE FIRST HALF OF THIS YEAR EUROPEAN CAR SALES WERE DOWN 17 FROM A YEAR EARLIER BUT NORTH AMERICANBUILT REGISTRATIONS ROSE 13 MR EATON THE CHRYSLER CHAIRMAN EXPECTS THE NO 3 AUTO MAKER TO SHOW STEADY 15 ANNUAL EXPORT GROWTH FOR THE REST OF THIS DECADE 9310180036 931018 MONEY RATES THE KEY US AND FOREIGN ANNUAL INTEREST RATES BELOW ARE A GUIDE TO GENERAL LEVELS BUT DON'T ALWAYS REPRESENT ACTUAL TRANSACTIONS PRIME RATE 6 THE BASE RATE ON CORPORATE LOANS POSTED BY AT LEAST 75 OF THE NATION'S 30 LARGEST BANKS FEDERAL FUNDS 3 HIGH 2 15/16 LOW 2 15/16 NEAR CLOSING BID 3 OFFERED RESERVES TRADED AMONG COMMERCIAL BANKS FOR OVERNIGHT USE IN AMOUNTS OF 1 MILLION OR MORE SOURCE PREBON YAMANE USA INC DISCOUNT RATE 3 THE CHARGE ON LOANS TO DEPOSITORY INSTITUTIONS BY THE FEDERAL RESERVE BANKS CALL MONEY 5 THE CHARGE ON LOANS TO BROKERS ON STOCK EXCHANGE COLLATERAL SOURCE TELERATE SYSTEMS INC COMMERCIAL PAPER PLACED DIRECTLY BY GENERAL ELECTRIC CAPITAL CORP 308 30 TO 89 DAYS 318 90 TO 239 DAYS 325 240 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS 313 30 DAYS 313 60 DAYS 323 90 DAYS CERTIFICATES OF DEPOSIT 253 ONE MONTH 258 TWO MONTHS 263 THREE MONTHS 273 SIX MONTHS 286 ONE YEAR AVERAGE OF TOP RATES PAID BY MAJOR NEW YORK BANKS ON PRIMARY NEW ISSUES OF NEGOTIABLE CDS USUALLY ON AMOUNTS OF 1 MILLION AND MORE THE MINIMUM UNIT IS 100000 TYPICAL RATES IN THE SECONDARY MARKET 310 ONE MONTH 320 THREE MONTHS 322 SIX MONTHS BANKERS ACCEPTANCES 305 30 DAYS 305 60 DAYS 315 90 DAYS 314 120 DAYS 314 150 DAYS 314 180 DAYS OFFERED RATES OF NEGOTIABLE BANKBACKED BUSINESS CREDIT INSTRUMENTS TYPICALLY FINANCING AN IMPORT ORDER LONDON LATE EURODOLLARS 3 3/16 3 1/16 ONE MONTH 3 3/16 3 1/16 TWO MONTHS 3 3/8 3 1/4 THREE MONTHS 3 3/8 3 1/4 FOUR MONTHS 3 3/8 3 1/4 FIVE MONTHS 3 3/8 3 1/4 SIX MONTHS LONDON INTERBANK OFFERED RATES LIBOR 3 3/16 ONE MONTH 3 3/8 THREE MONTHS 3 3/8 SIX MONTHS 3 1/2 ONE YEAR THE AVERAGE OF INTERBANK OFFERED RATES FOR DOLLAR DEPOSITS IN THE LONDON MARKET BASED ON QUOTATIONS AT FIVE MAJOR BANKS EFFECTIVE RATE FOR CONTRACTS ENTERED INTO TWO DAYS FROM DATE APPEARING AT TOP OF THIS COLUMN FOREIGN PRIME RATES CANADA 575 GERMANY 656 JAPAN 3375 SWITZERLAND 750 BRITAIN 6 THESE RATE INDICATIONS AREN'T DIRECTLY COMPARABLE LENDING PRACTICES VARY WIDELY BY LOCATION TREASURY BILLS RESULTS OF THE TUESDAY OCTOBER 121993 AUCTION OF SHORTTERM US GOVERNMENT BILLS SOLD AT A DISCOUNT FROM FACE VALUE IN UNITS OF 10000 TO 1 MILLION 304 13 WEEKS 312 26 WEEKS FEDERAL HOME LOAN MORTGAGE CORP FREDDIE MAC POSTED YIELDS ON 30YEAR MORTGAGE COMMITMENTS DELIVERY WITHIN 30 DAYS 647 60 DAYS 656 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 3625 2 RATE CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE TELERATE SYSTEMS INC FEDERAL NATIONAL MORTGAGE ASSOCIATION FANNIE MAE POSTED YIELDS ON 30YEAR MORTGAGE COMMITMENTS PRICED AT PAR FOR DELIVERY WITHIN 30 DAYS 650 60 DAYS 660 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 475 6/2 RATE CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE TELERATE SYSTEMS INC MERRILL LYNCH READY ASSETS TRUST 269 ANNUALIZED AVERAGE RATE OF RETURN AFTER EXPENSES FOR THE PAST 30 DAYS NOT A FORECAST OF FUTURE RETURNS 9310180035 931018 BUSINESS BRIEF BALLY GAMING INTERNATIONAL INC RESTATEMENTS WIDEN LOSS FOR FIRST SECOND QUARTERS BALLY GAMING INTERNATIONAL INC SAID IT RESTATED ITS RESULTS FOR THE FIRST TWO QUARTERS OF THIS YEAR WIDENING LOSSES FOR BOTH PERIODS AFTER BEING ADVISED BY OUTSIDE ACCOUNTANTS THAT IT INCORRECTLY APPLIED A NEW TAX RULE THE RESTATEMENT YIELDED AN ADDITIONAL LOSS OF 800000 OR SEVEN CENTS A SHARE FOR THE FIRST QUARTER BRINGING THE GAMINGMACHINE MAKER'S TOTAL LOSS FOR THE PERIOD TO ABOUT 43 MILLION OR 40 CENTS A SHARE SAID GARY J SIMPSON TREASURER AND CHIEF FINANCIAL OFFICER OF THE LAS VEGAS COMPANY FOR THE SECOND QUARTER THE RESTATEMENT ADDS A 200000 OR TWO CENTS A SHARE LOSS FOR A TOTAL LOSS FOR THE PERIOD OF ABOUT 23 MILLION OR 21 CENTS A SHARE BALLY GAMING'S STOCK CLOSED AT 22 DOWN 375 CENTS IN NATIONAL OVERTHECOUNTER TRADING ON FRIDAY 9310180034 931018 BUSINESS BRIEFS PENNFIRST BANCORP INC ELWOOD CITY PA AGREED TO PURCHASE ESB BANCORP INC FOR 25 MILLION BELL ATLANTIC CORP SIGNED AN EARLY RENEWAL OF A TWOYEAR CONTRACT WITH DSC COMMUNICATIONS CORP DALLAS TO PROVIDE FIBERBASED TELECOMMUNICATIONS EQUIPMENT TERMS WEREN'T DISCLOSED CANANDAIGUA WINE CO COMPLETED THE PURCHASE OF VINTNERS INTERNATIONAL CO FOR 1496 MILLION PLUS STOCK OPTIONS VALUED AT 2 MILLION BROWNFORMAN CORP LOUISVILLE KY COMPLETED THE SALE OF ITS CREDITCARD PROCESSING BUSINESS TO NATIONAL BANCARD CORP A UNIT OF FIRST FINANCIAL MANAGEMENT CORP ATLANTA TERMS WEREN'T DISCLOSED MANVILLE CORP'S SCHULLER INTERNATIONAL INC AND OWENSCORNING FIBERGLAS CORP AGREED TO COMPLY WITH A FEDERAL TRADE COMMISSION REQUEST FOR ADDITIONAL INFORMATION ON A PLAN BY BOTH COMPANIES TO SELL EACH OTHER PART OF THEIR ROOFING BUSINESSES TSX CORP EL PASO TEXAS SAID ITS TEXSCAN SUBSIDIARY IS NEGOTIATING WITH ITS LONGTERM LENDER FOR A RESTRUCTURING OF ITS 169 MILLION IN SENIOR NOTES MCORP DALLAS AND TWO OF ITS FINANCIAL UNITS WERE ISSUED A STAY OF THEIR REORGANIZATION PLANS PENDING AN APPEAL HEARING FILED BY SOME CREDITORS 9310180033 931018 BUSINESS BRIEF FORD MOTOR CO OF CANADA NEW LABOR PACT WINS VOTE OF CANADIAN AUTO WORKERS CANADIAN AUTO WORKERS UNION MEMBERS VOTED MORE THAN 90 IN FAVOR OF RATIFYING A NEW LABOR CONTRACT WITH FORD MOTOR CO OF CANADA THE RATIFICATION MARKS THE COMPLETION OF THE UNION'S NEGOTIATIONS WITH THE CANADIAN SUBSIDIARIES OF THE BIG THREE AUTO MAKERS FOR NEW THREEYEAR CONTRACTS CAW PRESIDENT BUZZ HARGROVE SAID IT WAS THE FIRST TIME IN AT LEAST 30 YEARS THAT AUTO WORKERS HAVE REACHED NEW CONTRACTS WITH THE BIG THREE IN CANADA WITHOUT A WORK STOPPAGE THE CONTRACTS INCLUDE INCREASES IN WAGES PENSIONS AND TIME OFF AND SHOULD CREATE ABOUT 4000 NEW JOBS OVER THE NEXT THREE YEARS MR HARGROVE SAID THE CONTRACT WITH FORD IN OAKVILLE ONTARIO ALSO REQUIRES THAT FORD WORKERS TAKE ALL OF THEIR ALLOTTED HOLIDAYS A PROVISION THAT THE UNION SAYS IS NEEDED TO CUT DOWN ON OVERTIME AND CREATE JOBS THE CAW REPRESENTS 11000 AT FORD AND ABOUT 49000 WORKERS AT THE BIG THREE IN CANADA 9310180032 931018 BUSINESS BRIEF TANDY CORP SALES GROWTH IS PROJECTED FOR COMPUTER CITY STORES TANDY CORP SAID SALES AT ITS COMPUTER CITY SUPERSTORE UNIT ARE EXPECTED TO REACH 500 MILLION THIS YEAR AND WILL DOUBLE TO 1 BILLION BY THE END OF 1994 TANDY CORP CHAIRMAN JOHN ROACH IN COMMENTS TO SHAREHOLDERS DESCRIBED THE EXPECTED GROWTH AT COMPUTER CITY AS PART OF A BROADER REVITALIZATION AT TANDY OF FORT WORTH TEXAS THAT COULD TRIPLE THE COMPANY'S SIZE BY 1998 TANDY LAST YEAR REPORTED SALES OF NEARLY 4 BILLION MR ROACH SAID IT IS POSSIBLE FOR TANDY TO SNAG AS MUCH AS 15 OF THE 80 BILLION PERSONAL COMPUTER AND CONSUMER ELECTRONICS BUSINESS WITHIN THE NEXT FIVE YEARS THANKS PRIMARILY TO ZOOMING GROWTH AT COMPUTER CITY AND INCREDIBLE UNIVERSE THE COMPANY'S OTHER SUPERSTORE CHAIN TANDY SAID COMPUTER CITY WILL HAVE OPENED 17 STORES BY THE END OF THIS YEAR WITH 24 MORE OUTLETS PLANNED IN 1994 INCREDIBLE UNIVERSE IS EXPECTED TO OPEN SIX OUTLETS NEXT YEAR 9310180031 931018 WHO'S NEWS DRUG EMPORIUM INC DRUG EMPORIUM INC COLUMBUS OHIO GARY WILBER 43YEAROLD VICE CHAIRMAN OF THIS DEEPDISCOUNT DRUGSTORE CHAIN WILL STEP DOWN EFFECTIVE APRIL 29 1994 HE WON'T STAND FOR REELECTION TO THE BOARD WHEN HIS TERM EXPIRES IN JUNE MR WILBER SAID HE IS STEPPING DOWN BECAUSE HE HAS MULTIPLE MYELOMA A FORM OF CANCER THEY'RE TELLING ME I'M IN REMISSION BUT THEY CAN'T SAY HOW LONG IT'LL LAST HE SAID ADDING THERE ARE SOME FAMILY AND PERSONAL THINGS I WANT TO GET DONE MR WILBER HAS BEEN AN OFFICER AND DIRECTOR OF THE COMPANY SINCE HIS FATHER PHILIP FOUNDED IT IN 1977 HE SERVED AS CHIEF EXECUTIVE FROM JANUARY 1990 TO DECEMBER 1992 WHEN HE WAS SUCCEEDED BY DAVID L KRIEGEL AND NAMED VICE CHAIRMAN 9310180030 931018 OFFER CAN'T BE USED WITH ANY FREQUENT STRETCHER PROGRAMS HOSPITAL'S DISCOUNT COUPONS GIVE PATIENTS 25 OFF ALL EMERGENCYROOM SERVICES BY JONATHAN MAHLER SPECIAL TO THE WALL STREET JOURNAL NEW YORK ATTENTION HILLARY RODHAM CLINTON NEW YORK DOWNTOWN HOSPITAL IS DOING ITS PART TO MAKE HEALTH CARE MORE AFFORDABLE NEED A LIMB REATTACHED OR A BULLET REMOVED JUST BRING IN A SPECIAL COUPON AND YOU'RE ENTITLED TO 25 OFF THESE OR ANY OTHER EMERGENCYROOM SERVICES THE CERTIFICATE CAN BE FOUND IN A BROCHURE DISTRIBUTED LAST SUMMER BY THE PORT AUTHORITY OF NEW YORK AND NEW JERSEY IN AN EFFORT TO LURE PEOPLE BACK TO LOWER MANHATTAN AFTER THE WORLD TRADE CENTER BOMBING BUT LEAVE YOUR INSURANCE CARD AT HOME PATIENTS MUST PAY IN FULL WITH CASH OR CREDIT CARD THOSE WITH HEART TROUBLE OR JUST HIGH CHOLESTEROL ALSO MAY BE INTERESTED IN THE EARLY WARNING SIGNS WALLET CARD THAT ARE GIVEN FREE EACH VISIT AND TO PREVENT POTENTIAL ABUSE OF THE SPECIAL OFFER THERE IS THIS FAMILIAR WARNING LIMIT ONE PER CUSTOMER THE HOSPITAL WAS HOPING THAT THE PROMOTIONAL BROCHURE WOULD BOLSTER ITS IDENTITY WE PLAYED AN IMPORTANT ROLE IN HELPING THE VICTIMS OF THE WORLD TRADE CENTER BOMBING BOASTS DR JOHN FERRY THE HOSPITAL'S MEDICAL DIRECTOR BUT FORTUNATELY OR UNFORTUNATELY WE DIDN'T GET LOTS OF ATTENTION AND APPARENTLY THE COUPON DIDN'T HELP MUCH NO ONE USED IT DR FERRY CONFESSES GENERALLY PEOPLE DON'T RUN TO THE HOSPITAL TO SAVE 25 AND WHILE THE OFFER MAY LOOK LIKE A MONEYSAVER CRITICS POINT OUT THAT IT PROMOTES USE OF THE HOSPITAL'S MOST EXPENSIVE SERVICES THE IDEA SEEMS SILLY AND INCONSISTENT WITH NATIONAL COSTCONTAINMENT ISSUES SAYS LAWRENCE NELSON A BIOETHICS CONSULTANT IN SAN FRANCISCO MR NELSON HAS SEEN SOME EVEN STRANGER MEDICAL MARKETING PLOYS FOR EXAMPLE HE RECALLS A NEVADA HOSPITAL OFFERED A DISCOUNT TO PATIENTS ADMITTED ON WEEKENDS BUT WITH MOST OF THE HOSPITAL'S SERVICES AVAILABLE ONLY DURING THE WEEK THE OFFER ACTUALLY ENCOURAGED LONGER STAYS AND THEN THERE WAS THE POSTER OF AN ATTRACTIVE YOUNG WOMAN IN A BIKINI AN AD FOR A COSMETIC SURGEON NOPE IT WAS INTRODUCING A NEW TYPE OF COLON SURGERY DOWNTOWN HOSPITAL SAYS IT DOESN'T PLAN FURTHER APPEALS TO COSTCONSCIOUS SUFFERERS FUTURE EMERGENCYROOM VISITORS WILL BE EXPECTED TO PICK UP THE FULL TAB I DON'T THINK WE'LL TRY IT AGAIN SAYS DR FERRY ACKNOWLEDGING THAT A A COUPLE OF PEOPLE THOUGHT IT WAS A LITTLE TASTELESS THE OFFER EXPIRED AT THE END OF SEPTEMBER BUT FEAR NOT BARGAINHUNTERS DR FERRY SAYS THE HOSPITAL WILL PROBABLY HONOR OUTSTANDING COUPONS 9310180029 931018 BUSINESS BRIEF NOBLE CHINA INC CHINA BEERVENTURE STAKE IS BOUGHT FOR CASH AND STOCK NOBLE CHINA INC SAID IN TORONTO THAT IT PURCHASED A 60 STAKE IN ZHAOQING BLUE RIBBON NOBLE LTD A BEERBREWING JOINT VENTURE IN CHINA FOR 768 MILLION CANADIAN DOLLARS US579 MILLION PAYABLE IN CASH AND SHARES OF NOBLE THE STAKE WAS ACQUIRED FROM LEI KAT CHEONG OF HONG KONG THE REMAINDER IS OWNED BY THE MUNICIPALITY OF ZHAOQING IN GUANGDONG PROVINCE CHINA NOBLE CHINA WHOSE SHARES ARE LISTED ON THE TORONTO STOCK EXCHANGE RECENTLY RAISED C70 MILLION IN EQUITY FINANCING IN CANADA AND HAS AGREED TO INVEST ABOUT C38 MILLION IN THE JOINT VENTURE ZHAOQING BLUE RIBBON IS NOT ABLE TO EVEN COME CLOSE TO THE EXISTING DEMAND FOR BEER IN CHINA SAID JOHN PENNAL A LAWYER FOR NOBLE CHINA THE JOINT VENTURE PRODUCES BEER UNDER THE PABST BLUE RIBBON TRADEMARK UNDER A LICENSING AGREEMENT WITH PABST BREWING CO A UNIT OF S&P CO OF MILL VALLEY CALIF NOBLE CHINA SAID IT PLANS TO BUY ANOTHER BREWERY IN CHINA 9310180028 931018 POLITICS & POLICY US OFFICIALS SAY RESTORING DEMOCRACY IN HAITI MAY REQUIRE MILITARY INVASION BY CARLA ANNE ROBBINS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON WITH HAITI'S MILITARY RULERS REFUSING TO STEP DOWN US OFFICIALS SAID MILITARY INTERVENTION WAS ONE AMONG SEVERAL OPTIONS UNDER CONSIDERATION BUT A US INVASION AND OCCUPATION TO RESTORE HAITIAN DEMOCRACY COULD PROVE FAR MORE COSTLY AND FAR MORE LENGTHY THAN US OFFICIALS HAVE YET TO ACKNOWLEDGE MADELEINE ALBRIGHT US AMBASSADOR TO THE UNITED NATIONS TOLD NBCTV'S MEET THE PRESS YESTERDAY THAT THE US HADN'T RULED OUT ANYTHING IN HAITI INCLUDING MILITARY INTERVENTION ON FRIDAY PRESIDENT CLINTON DISPATCHED SIX AMERICAN WARSHIPS TO ENFORCE A UN OIL EMBARGO ON HAITI AND ORDERED 600 MARINES TO STAND BY AT GUANTANAMO BAY NAVAL BASE IN CUBA TO RESCUE AMERICAN CITIZENS SHOULD THEY COME UNDER ATTACK SO FAR AMERICANS HAVEN'T BEEN HARMED BUT HUNDREDS OF FOREIGNERS INCLUDING AMERICANS FLED HAITI'S SPREEKEND OUSTED HAITIAN PRESIDENT JEANBERTRAND ARISTIDE TOLD CNN ON SATURDAY THAT HE OPPOSED SENDING FOREIGN TROOPS TO HAITI THE ONLY THING WE HAVE TO CONTINUE DOING IS MOVING THE WAY WE ARE MOVING THROUGH THIS BLOCKADE HE SAID IN AN INTERVIEW YESTERDAY WITH CNN HAITIAN MILITARY LEADER GEN RAOUL CEDRAS SAID WE HAVE NO INTENTION TO DEFY THE UNITED STATES OUR COUNTRY IS NO THREAT TO PEACE IT IS NOT AT WAR BUT WHEN ASKED WHETHER HE WOULD NOW STEP DOWN FROM POWER AS SPECIFIED BY A POLITICAL SETTLEMENT NEGOTIATED LAST JULY THE GENERAL GAVE CONTRADICTORY RESPONSES ACCORDING TO THAT AGREEMENT GEN CEDRAS WAS TO RESIGN HIS COMMAND LAST FRIDAY AND PRESIDENT ARISTIDE WAS TO RETURN TO OFFICE OCT 30 US OFFICIALS SAID THAT MAINTAINING THE BLOCKADE AND TRYING TO WAIT OUT HAITI'S DEFIANT MILITARY AND ITS ELITE BACKERS IS ANOTHER POLICY OPTION UNDER CONSIDERATION TIGHTENING THE SCREWS ON HAITI'S WEALTHY ELITE MIGHT PERSUADE THEM TO ACCEPT A POLITICAL SETTLEMENT BUT US OFFICIALS EXPRESSED CONCERN THAT A PROLONGED EMBARGO WOULD CAUSE GRAVE SUFFERING FOR HAITI'S POOR AND DRIVE THOUSANDS OF BOAT PEOPLE TO SEEK REFUGE IN THE US GETTING THE MARINES INTO HAITI WOULD BE EASY THE ATTACHES AND ARMED THUGS THAT MAKE UP THE HAITIAN ARMY AND POLICE WOULD BE NO MATCH FOR AMERICAN MILITARY MIGHT GETTING THEM OUT COULD PROVE DIFFICULT HOWEVER ESPECIALLY IF THEIR MISSION IS TO BUILD A WORKING DEMOCRACY THERE A TASK THAT WOULD ALMOST CERTAINLY TAKE YEARS FEELING THE STING OF POLICY FAILURES IN BOSNIA AND SOMALIA PRESIDENT CLINTON MIGHT BE TEMPTED TO DO JUST THAT FEELING THE STING OF LEBANON PRESIDENT REAGAN INVADED GRENADA PRESIDENT BUSH SENT TROOPS TO RESCUE STARVING SOMALIS ANOTHER SUPPOSEDLY EASY MILITARY TASK IN PART TO AVOID HAVING TO SEND THEM TO BOSNIA ARGUABLY THE US HAS MUCH STRONGER NATIONAL INTERESTS IN STABILIZING HAITI THAN IT DOES IN SOMALIA OR EVEN BOSNIA HAITI AFTER ALL IS RIGHT OFF AMERICA'S SHORES AND THE PROSPECT OF TENS OF THOUSANDS OF BOAT PEOPLE SETTING SAIL FOR FLORIDA WOULD BE A POLITICAL NIGHTMARE FOR MR CLINTON IF HAITI'S MILITARY BEGINS GUNNING DOWN ITS OWN PEOPLE WHOLESALE PRESIDENT CLINTON MAY HAVE LITTLE CHOICE BUT TO INTERVENE BEFORE MAKING THAT DECISION HOWEVER THE US MUST WEIGH THE COSTS AND DETERMINE ITS GOALS AND HOW LONG IT IS PREPARED TO STAY SETTING A CLEAR EXIT DATE FROM HAITI A LIKELY CONGRESSIONAL PREREQUISITE FOR ANY INTERVENTION COULD PUT THE US INTO THE SAME BIND AS IN SOMALIA HAVING TO PULL OUT WHETHER OR NOT THE JOB IS COMPLETED SENATE MINORITY LEADER ROBERT DOLE R KAN SAID YESTERDAY ON CBSTV'S FACE THE NATION THAT HE WOULD OFFER LEGISLATION THIS WEEK REQUIRING CONGRESSIONAL AUTHORIZATION BEFORE US TROOPS COULD BE SENT TO HAITI FACED WITH SUCH OPPOSITION THE ADMINISTRATION MAY DECIDE THAT STICKING WITH THE EMBARGO WHICH GOES INTO EFFECT AT MIDNIGHT TONIGHT IS ITS BEST OPTION IT IS PRECISELY THOSE TOUGHENED SANCTIONS THAT DROVE THE MILITARY AND ITS ELITE BACKERS TO THE BARGAINING TABLE LAST JULY GIVEN ENOUGH TIME AND ENOUGH FINANCIAL LOSS HAITI'S WEALTHY ELITE OF WHICH ITS MILITARY LEADERS ARE NOW MEMBERS COULD DECIDE A POLITICAL SETTLEMENT THAT INCLUDES A RESTORATION OF DEMOCRACY IS A BETTER ECONOMIC PROPOSITION THAN CONTINUED DICTATORSHIP IF NEGOTIATIONS ARE RESUMED INTERNATIONAL MEDIATORS WOULD HAVE TO BE FAR MORE SKEPTICAL OF MILITARY PROMISES THIS TIME AROUND A SETTLEMENT ALSO WOULD HAVE TO INCLUDE A MORE RIGOROUS PROCESS FOR DISARMING THE THUGS MORE ROBUST RULES OF ENGAGEMENT FOR MILITARY TRAINERS AND ADVISERS SENT TO SUPPORT IT STILL THE WORK WOULDN'T END THERE A SETTLEMENT WOULD REQUIRE YEARS OF FINANCIAL BACKING TECHNICAL SUPPORT AND POLITICAL GUIDANCE FROM THE US AND OTHER COUNTRIES WITH A LONGTIME INTEREST IN HAITI NOTABLY CANADA FRANCE AND VENEZUELA WHATEVER THE MEANS EITHER DIPLOMATIC OR MILITARY THE PROCESS OF BUILDING DEMOCRACY IN HAITI WOULD REQUIRE A GENERATIONLONG COMMITMENT FROM THE US AND OTHERS WITH NO GUARANTEED EXIT 9310180027 931018 LEISURE & ARTS TELEVISION MAN OF STEEL BESTS THE CLONES BY DOROTHY RABINOWITZ EACH NEW TELEVISION SEASON BRINGS ON A GOODLY AMOUNT OF CRITICAL SIGHING AND MOANING ABOUT NETWORKS DOING THEIR USUAL AND TURNING OUT THE SAME OLD THINGS ETC BUT THE TRUTH ABOUT NEW SEASONS THIS ONE INCLUDED IS MORE COMPLICATED AND NOT ONLY BECAUSE AS IS ALSO TRUE THEY GENERALLY MANAGE TO PROVIDE A SURPRISE OR TWO LIKE THIS SEASON'S ENGAGING LOIS & CLARK THE NEW ADVENTURES OF SUPERMAN FOR ONE THING IT DOESN'T SEEM QUITE FAIR TO CHARGE THAT THE NEW FALL LINEUP IS FILLED WITH THE USUAL WHEN IN FACT EVERY NEW SEASON CAN BOAST PROGRAMS THAT TAKE VACUOUSNESS TO HEIGHTS HITHERTO UNDREAMED OF IT'S HARD TO SAY JUST YET WHAT SHOW WILL END UP TAKING HONORS IN THE LATTER CATEGORY BUT KEEP AN EYE ON ABC'S BOY MEETS WORLD FRIDAYS 8309 PM EDT THIS SITCOM WITH ITS RELENTLESSLY GRATING CHILD HERO BELONGS AMONG THE CONTENDERS FOR THIS DISTINCTION IT IS ALSO WORTH NOTING AS AN EXAMPLE OF WHAT EMERGES FROM THE EFFORT TO PRODUCE CLONES OF SUCCESSFUL SHOWS THIS SEASON AS IT TAKES ONLY A NIGHT OR TWO'S WATCHING TO NOTE HAS PRODUCED A BUMPER CROP OF SUCH CLONES ESPECIALLY FAIRLY CRUDE MUTANT PROGENY OF ROSEANNE THE SECRET OF SUCCESS THE PRODUCERS AND WRITERS OF THESE CONFECTIONS SEEM TO BELIEVE IS IN FOLLOWING A FORMULA THIS IS WHY THE DEPARTED AND CHARMING COMEDY THE WONDER YEARS ABOUT A BOY FRED SAVAGE GROWING INTO ADOLESCENCE IS NOW FOLLOWED BY A SITCOM ABOUT AN 11YEAROLD DOING THE SAME BOY MEETS WORLD STARS BEN SAVAGE YOUNGER BROTHER OF FRED THERE IS NO MYSTERY ABOUT WHY THIS VENTURE TURNS OUT TO BE SUCH A FAR CRY FROM THE SHOW ON WHICH IT WAS MODELED OR WHAT MAKES IT SO STEADFASTLY AND AGGRESSIVELY IDIOTIC WHAT IT IS OF COURSE IS WRITING AND SENSIBILITY LIKE SO MANY OTHER NEW SITCOMS THIS ONE IS ALL HET UP ABOUT FAMILY VALUES INDEED THE GREAT CREATIVE PROBLEM CONFRONTING SCRIPTWRITERS THIS SEASON SEEMS TO HAVE BEEN HOW TO PRODUCE A SHOW THAT WAS LOWDOWN AND VITRIOLFILLED LIKE ROSEANNE AND ALSO FULL OF WARMTH INSPIRATION AND YOUKNOWWHAT VALUES A SHOW LIKE CBS'S LOUDMOUTHED FAMILY ALBUM FRIDAYS 8309 PM EDT HAS AN ESPECIALLY DAUNTING PROBLEM GIVEN SCRIPTS WHOSE ACTION CONSISTS ALMOST ENTIRELY OF THE RAGINGS OF A BROOD OF ETHNIC PRIMITIVES JEWS AND ITALIANS HAVING AT ONE ANOTHER ONE MEMBER OF THIS MOB RELATES HOW HAPPY IT WOULD MAKE HER TO RUN HER MOTHER DOWN WITH THE CAR AND WE HAVE NO TROUBLE BELIEVING HER A TESTAMENT TO THE HATEFILLED ATMOSPHERICS HERE STILL EVEN IN THIS HELL THERE HAVE TO BE FAMILY VALUES WHICH IS WHY SOMEBODY GETS AN I LOVE YOU IN AT THE END AND SOMEONE SAYS I LOVE YOU BACK IN BOY MEETS WORLD THERE ARE NO SUCH CONFLICTS BUILT AROUND A SMARTMOUTHED CHILD THE SHOW'S SCRIPT IS NONETHELESS POSITIVELY DRENCHED IN DRIVEL ABOUT LOVE AND FAMILY TIES IN A WAY THAT CAN MAKE A VIEWER LONG FOR THE LUNATIC VITUPERATION OF FAMILY ALBUM WHICH IS SAYING A LOT IT DOESN'T HELP THAT THE SCRIPTWRITERS PUT THIS BABBLE INTO THE MOUTH OF THAT ESTIMABLE ACTOR WILLIAM DANIELS WHO PLAYS THE TEACHER OF THE BOY AS WELL AS A NEXTDOOR NEIGHBOR AS THE SHOW'S MOUTHPIECE FOR VALUES THE TEACHER GETS TO PEEK THROUGH THE WINDOWS OF THE BOY'S HAPPY HOME AND TO DELIVER WISTFUL SPEECHES CONVEYING HIS YEARNING FOR THE KIND OF FAMILY LOVE AND CHILDREN INSIDE IN REAL LIFE IT'S A GOOD BET THE TEACHER WOULD GET UP MORNINGS THANKING THE LORD FOR SPARING HIM FROM HAVING TO LIVE LIFE LIKE THE CROWD NEXT DOOR TO HEAR MR DANIELS DELIVER THIS MUCK INTELLIGENTLY THE ONLY WAY HE KNOWS HOW TO DELIVER LINES MAKES IT ALL SOUND WORSE IN AN ODD WAY YOUNG BEN SAVAGE GOES ABOUT IN A HIGH FRENZY WHILE BATTING OUT ONELINERS AND IS NEEDLESS TO SAY ONLY DOING WHAT THE SCRIPTWRITERS AND THE DIRECTOR TELL HIM TO HE MAY HOLD THAT AGAINST THEM ONE DAY NOT ALL THE SEASON'S CLONES CAME OUT SO POORLY TO BE SURE ABC'S GRACE UNDER FIRE WEDNESDAYS 93010 PM EDT STARRING COMEDIAN BRETT BUTLER GIVES US A HEROINE WHO LIVES IN A RUNDOWN SORT OF HOUSE THAT COULD HAVE WALKED OFF THE ROSEANNE SET AND HER THREE NEWLY FATHERLESS CHILDREN IN THIS BUSY AMERICAN HOUSEHOLD CONVERSATION REVOLVES AROUND SEX BODY FUNCTIONS AND OCCASIONALLY MORE ELEVATED ISSUES LIKE JOCKSTRAPS WHEN NOT WORKING HER JOB AMONG MALE LOUTS AT AN OIL REFINERY GRACE IS PREOCCUPIED WITH HER NEW LIFE AS A SINGLE MOTHER HAVING JUST SHED AN ABUSIVE HUSBAND IN TELEVISION HAPPY FAMILIES ARE NOT ALL ALIKE BUT EVERYONE IT SEEMS HAS A NEW LIFE EVERYONE IS IN RECOVERY OF ONE KIND OR ANOTHER FROM JOHN LARROQUETTE WHOSE CHARACTER THE JOHN LARROQUETTE SHOW NBC IS AN ALCOHOLIC BEGINNING ALL OVER AGAIN AS MANAGER OF A BUS STATION TO DR FRASIER CRANE IN NBC'S FRASIER BUSY RECONSTRUCTING HIS RELATIONSHIP WITH HIS CHRONICALLY IRASCIBLE FATHER THE CHIEF HART BEAU BRIDGES OF CBS'S HARTS OF THE WEST HAS JUNKED BIGCITY CAREERISM IN FAVOR OF A TREK OUT WEST WITH ALL THIS SHUFFLING ABOUT AND RECONSTRUCTION IN PRIME TIME IT'S LITTLE WONDER THAT AN HOUR OF LIGHT THOROUGHLY ESCAPIST COMEDY LIKE THE NEW SUPERMAN SEEMS FRESH AND A TREAT HERE NOBODY IS IN RECOVERY OR STARTING LIFE ANEW HERE WE HAVE ONLY THE MAN IN THE CAPE PLAYED CHARMINGLY BY DEAN CAIN WATCH HIM SOAR ALOFT IN THE SUPERMAN SUIT HIS MOTHER MADE LEST ANYONE THINK THIS SHOW IS BEREFT OF FAMILY VALUES THE SIGNS THAT LOIS & CLARK ABC SUNDAYS 89 PM EDT WAS A SHOW TO WATCH WERE EVIDENT EARLY ON AND NEVER MORE CLEARLY THAN IN THE SCENE IN WHICH LOIS SENDS THE OBLIGING CLARK OUT FOR CHINESE FOOD WHEREUPON CLARK DONS HIS SUIT AND FLIES TO MAINLAND CHINA FOR THE STUFF WHICH HE DELIVERS IN A TRICE TO LOIS WHO MARVELS AT THE FACT THAT HE COULD HAVE GOT AN ORDER BACK FROM THE LOCAL RESTAURANT SO SOON IT DOESN'T MATTER WHERE SUPERMAN FLIES IT'S REMARKABLY GOOD TO SEE HIM UP THERE WINGING INTO THE BLUE AND IT'S PLEASANT TO THINK OF HIM FLYING HIGH OVER THE TELEVISION WORLD WITH ALL ITS YAMMERING ADOLESCENTS ITS FLINTY SINGLE MOTHERS AND BLUECOLLAR MISERIES 9310180026 931018 BIG BIRD AND MANY SPORTS MASCOTS WOULD THINK IT'S A DREADFUL IDEA BY JACQUELINE SIMMONS STAFF REPORTER OF THE WALL STREET JOURNAL HERE'S A BUSINESSSCHOOL PROJECT THAT'S FOR THE BIRDS IT HATCHED LAST YEAR WHEN GINO BIONDI CAME ACROSS AN ARTICLE COMPARING THE INVESTMENT RETURNS ON OSTRICHES AND CATTLE ACCORDING TO THE COMPELLING MATH AN OSTRICH CAN YIELD AS MUCH AS 125 POUNDS OF MEAT AT LESS COST THAN THE SAME AMOUNT OF BEEF SO MR BIONDI A RECENT GRADUATE OF WAKE FOREST UNIVERSITY'S BABCOCK GRADUATE SCHOOL OF MANAGEMENT AND CLASSMATES WENT TO WORK ON HATCH RATES CHICK SURVIVABILITY AND COSTS THEY CAME UP WITH A MARKETING PLAN FOR THE NORTH CAROLINA OSTRICH BREEDERS ASSOCIATION A GROUP OF 140 OSTRICH BREEDERS WHO NOW RAISE THE BIRDS PRIMARILY FOR THE HIDES AND FEATHERS BUT WOULD LIKE TO PROMOTE THE ANIMAL AS A MENU ITEM MY IDEAL GOAL IS TO SEE OSTRICH HAMS OSTRICH SAUSAGES AND OSTRICH HOT DOGS BEAMS 32YEAROLD MR BIONDI NOW A MARKETING ASSISTANT FOR A CONSUMERFOODS COMPANY IN WINSTONSALEM NC BY 1996 THE WAKE FOREST TEAM CONCLUDED 13000 HENS IN THE US COULD PRODUCE MORE THAN 165000 CHICKS A YEAR THAT'S AS MUCH AS 125 MILLION POUNDS OF OSTRICH MEAT OSTRICH ASSOCIATION BOARD MEMBER STAN POMERANZ APPLAUDS THE IDEA OF BREEDING HIS OSTRICHES AND EMUS FOR FOOD I ATE A WILD MOREL MUSHROOM DISH THAT WAS OUT OF THIS WORLD HE SAYS THE MEAT IS VERY FAMILIARLOOKING YOU COULDN'T TELL THE DIFFERENCE BETWEEN OSTRICH AND BEEF OTHER OSTRICH FANCIERS ALSO BELIEVE THE TEAM IS ON THE RIGHT TRACK BOILED OSTRICH WITH BLUEBERRY CHUTNEY AT 28 A PLATE HAS TAKEN OFF LIKE GANGBUSTERS AT HUNTINGTON RESTAURANT IN DALLAS DECLARES MICHAEL COLLIER HEAD CHEF MR COLLIER ALSO WHIPS UP OSTRICH SPRING ROLLS AND STIR FRY THE LOWFAT PROTEINPACKED OSTRICH MEAT HE CONTENDS IS GOOD FOR THE HEALTHCONSCIOUS AND CURIOUS DINERS WHO COME IN AND FIND IT TASTES LIKE STEAK MOST AMERICANS HOWEVER ARE STILL LIKELY TO CHOOSE A BEEF BURGER OR PEPPERONI PIZZA OVER OSTRICH SAYS WENDY WEBSTER OF THE NATIONAL RESTAURANT ASSOCIATION IN WASHINGTON IN MOST RESTAURANTS IN THIS COUNTRY IT PROBABLY WOULDN'T WORK SHE ADDS DON'T ASK MR BIONDI OR HIS COLLEAGUES FOR THEIR TASTE PREFERENCES THEY HAVEN'T TASTED OSTRICH MEAT IT'S TOO HARD TO FIND THEY SAY 9310180024 931018 WHO'S NEWS SOUTHERN NATIONAL CORP SOUTHERN NATIONAL CORP WINSTONSALEM NC C ROYCE HOUGH FORMER EXECUTIVE VICE PRESIDENT AT FIRST UNION NATIONAL BANK OF VIRGINIA WAS NAMED EXECUTIVE VICE PRESIDENT OF CORPORATE BANKING OF THIS BANK A NEW POSITION MR HOUGH 55 YEARS OLD WILL JOIN THE BANK'S SENIOR MANAGEMENT TEAM 9310180023 931018 BROTHER INDUSTRIES ENTERS JOINT VENTURE WITH CHINA TYPICAL SPECIAL TO THE WALL STREET JOURNAL TOKYO BROTHER INDUSTRIES LTD JAPAN'S LARGEST MAKER OF SEWING MACHINES KNITTING MACHINES AND TYPEWRITERS IS SETTING UP A SEWINGMACHINE JOINT VENTURE IN CHINA THE NEW COMPANY XIAN TYPICAL BROTHER INDUSTRIES CO WILL BE OFFICIALLY ESTABLISHED IN NOVEMBER IN XIAN LOCATED IN NORTHWESTERN CHINA BROTHER'S PARTNER IS CHINA TYPICAL SEWING MACHINE CO XIAN TYPICAL BROTHER IS SLATED TO BEGIN PRODUCTION IN JANUARY 1995 WITH ABOUT 250 EMPLOYEES BROTHER SAID IT HAS AN INITIAL PRODUCTION TARGET OF 75000 MACHINES A YEAR THE VENTURE WILL BE CAPITALIZED AT 20 MILLION OF WHICH BROTHER WILL PROVIDE 60 AND CHINA TYPICAL SEWING MACHINE WILL PROVIDE THE REST NUMEROUS JAPANESE CONCERNS HAVE STARTED VENTURES WITH CHINESE OR OTHER ASIAN PARTNERS OR HAVE EXPANDED OR SHIFTED PRODUCTION IN THE REGION THE YEN'S RAPID APPRECIATION LESS EXPENSIVE LABOR AND LOWER PROCUREMENT COSTS HAVE ATTRACTED JAPANESE COMPANIES SEEKING TO GAIN A FOOTHOLD THERE 9310180022 931018 COSTCO WHOLESALE TO BE CUT FROM S&P MIDCAP INDEX NEW YORK COSTCO WHOLESALE WILL BE REMOVED FROM THE STANDARD & POOR'S CORP MIDCAP 400 INDEX AFTER ITS MERGER WITH PRICE CO S&P SAID THE NEW COMPANY PRICE COSTCO WILL REMAIN IN THE S&P 500 INDEX RETAILSPECIALTY INDUSTRY GROUP S&P ADDED PH GLATFELTER CO A SPRING GROVE PA MANUFACTURER OF PRINTING WRITING AND TECHNICAL SPECIALTY PAPERS WILL REPLACE COSTCO WHOLESALE IN THE S&P MIDCAP 400 INDEX COSTCO WHOLESALE IS BASED IN KIRKLAND WASH WHILE PRICE CO'S HEADQUARTERS ARE IN SAN DIEGO THE MERGER OF THE TWO WAREHOUSE CLUB CHAINS IS EXPECTED TO BE COMPLETED BY THE END OF THE YEAR 9310180021 931018 CANADIAN STEEL OUTPUT FALLS OTTAWA CANADIAN PRIMARYSTEEL PRODUCTION TOTALED 240175 METRIC TONS IN THE WEEK ENDED OCT 9 AN 84 DECLINE FROM 262168 TONS THE PREVIOUS WEEK AND A 109 DECLINE FROM 269483 TONS A YEAR EARLIER STATISTICS CANADA A GOVERNMENT AGENCY SAID A METRIC TON IS EQUAL TO 220462 POUNDS FOR THE YEAR TO DATE PRODUCTION TOTALED 11070307 TONS A 45 INCREASE FROM 10594930 TONS A YEAR EARLIER 9310180020 931018 POLITICS & POLICY RETIRED FBI AGENT RECALLS HIS INQUIRY OF OSWALD DEPICTS POSTASSASSINATION FEARS IN WASHINGTON BY DENNIS FARNEY STAFF REPORTER OF THE WALL STREET JOURNAL KANSAS CITY MO FOR 30 YEARS JIM HOSTY HAS RELIVED THAT BRIEF TRUNCATED CONVERSATION WITH LEE HARVEY OSWALD PONDERING THE QUESTION THAT NEVER GOT ANSWERED THE TIME WAS 315 PM NOV 22 1963 PRESIDENT JOHN F KENNEDY HAD BEEN PRONOUNCED DEAD A LITTLE OVER TWO HOURS EARLIER NOW OSWALD HIS HANDS HANDCUFFED BEHIND HIM FACED FIVE INTERROGATORS IN A CROWDED DALLAS POLICE OFFICE AMONG THEM WAS FEDERAL BUREAU OF INVESTIGATION SPECIAL AGENT JAMES P HOSTY JR WHO SIZED UP THE SUSPECT BEFORE HIM A WISE GUY HE THOUGHT ALMOST COCKY DEFIANT AND ARGUMENTATIVE OSWALD WAS HOLDING HIS OWN THEN MR HOSTY SEEMED TO HIT A NERVE LEE HAVE YOU EVER BEEN TO MEXICO HE ASKED SURE OSWALD REPLIED TO TIJUANA WHILE A US MARINE NO THE AGENT PERSISTED NOT TIJUANA MEXICO CITY HAD OSWALD EVER BEEN TO MEXICO CITY HE JUMPED HE STARTLED RECALLS MR HOSTY BUT OSWALD NEVER HAD TO ANSWER THE QUESTION IN ONE OF THE MADDENING COINCIDENCES THAT COMPOUND THE CONFUSION OF THAT DAY THE INTERROGATION WAS INTERRUPTED BY AN OFFICER WHO STUCK HIS HEAD INTO THE DOORWAY IT WAS TIME FOR OSWALD TO APPEAR IN A POLICE LINEUP JIM HOSTY ABRUPTLY ORDERED BY SUPERIORS TO KEEP HIS DISTANCE FROM THE LOCAL INVESTIGATION WOULD NEVER TALK WITH HIM AGAIN THE UNANSWERED QUESTION IS HISTORY'S LOSS AND MR HOSTY'S LOSS AS WELL FOR THE ASSASSINATION OF PRESIDENT KENNEDY ENDED UP DAMAGING MR HOSTY'S PROFESSIONAL REPUTATION NOW RETIRED HERE IN KANSAS CITY HE'S TELLING HIS SIDE OF THE STORY IT IS A STORY OF A POSTASSASSINATION FBI FRANTICALLY TRYING TO INSULATE ITSELF AND ITS DIRECTOR J EDGAR HOOVER AND AT A MORE SENSATIONAL LEVEL OF A WARREN COMMISSION MR HOSTY SUSPECTS DELIBERATELY SUPPRESSED THE IMPORTANCE OF OSWALD'S SEPTEMBER 1963 TRIP TO MEXICO CITY AND HIS VISITS THERE TO THE CUBAN AND SOVIET EMBASSIES THE WARREN COMMISSION WASN'T TRYING TO GET TO THE BOTTOM OF IT HE MAINTAINS THEY WERE TRYING TO PREVENT WORLD WAR III FEAR OF WAR SECRET AGENTS INTERNATIONAL INTRIGUE THIS IS THE HIGH DRAMA OF MR HOSTY'S ACCOUNT BUT IT ALSO IS A STUDY OF HOW BANAL FACTORS PARTICULARLY THE SELFPROTECTIVE INSTINCTS OF LARGE BUREAUCRACIES CAN INTERTWINE WITH AND DISTORT THE MOST HISTORIC OF EVENTS MR HOSTY WAS THE DALLAS FBI SPECIAL AGENT ASSIGNED TO LEE AND MARINA OSWALD BEFORE THE ASSASSINATION IT SEEMED A FAIRLY ROUTINE INVESTIGTION ONE OF MORE THAN TWO DOZEN HE WAS WORKING KEEP TABS ON A FORMER DEFECTOR TO THE SOVIET UNION AND HIS RUSSIANBORN WIFE HE HAD INTERVIEWED MARINA ALTHOUGH NOT LEE AND KNEW FROM HER THAT LEE WAS WORKING AT THE TEXAS BOOK DEPOSITORY HE DIDN'T KNOW THAT IN APRIL 1963 OSWALD HAD ALREADY TRIED TO SHOOT EDWIN A WALKER A RIGHTWING FORMER GENERAL IN DALLAS NONE OF THIS INFORMATION WAS SHARED BY THE FBI WITH THE SECRET SERVICE BEFORE THE PRESIDENT CAME TO DALLAS SUPPOSE MR HOSTY HAD ALERTED THE SECRET SERVICE THAT A FORMER DEFECTOR TO THE SOVIET UNION WAS WORKING ALONG THE PRESIDENT'S MOTORCADE ROUTE THEY WOULD HAVE SAID WHAT ELSE IS NEW' IN THOSE DAYS HE SAYS THE SECRET SERVICE WAS CONCERNED WITH ONE THING AND ONE THING ONLY PEOPLE WHO HAD MADE DIRECT THREATS AGAINST THE PRESIDENT BUT WHEN THE WARREN COMMISSION WENT ON TO CRITICIZE THE FBI FOR TAKING AN UNDULY RESTRICTIVE VIEW OF ITS ROLE IN PREVENTIVE INTELLIGENCE WORK MR HOSTY TOOK A DIRECT HIT AFTER A FORMAL LETTER OF CENSURE FROM DIRECTOR HOOVER HE WAS TRANSFERRED HERE TO KANSAS CITY IN 1964 PUT ON A BICYCLE IN BUREAU PARLANCE AT 69 HE REMAINS A GARRULOUS STOCKY MAN WHO LOOKS LIKE THE STEREOTYPICAL IRISH COP AND A MAN CONVINCED THAT THE FBI BUREAUCRACY SOLD ME OUT MR HOSTY ASSERTS THAT FBI SUPERIORS ALTERED HIS WRITTEN ANSWERS TO A POSTASSASSINATION INTERROGATORY TO MAKE HIM LOOK WORSE THE ALTERED ANSWER HAS HIM ADMITTING IT POSSIBLY WOULD HAVE BEEN BETTER HAD HE MOVED MORE AGGRESSIVELY ON CERTAIN ASPECTS OF THE INVESTIGATION BUT HE ALSO VOLUNTEERS THAT IN A GRAVE MISTAKE HE CARRIED OUT A SUPERIOR'S ORDER TO DESTROY AN EMBARRASSING PIECE OF EVIDENCE A NOTE TO HIM FROM OSWALD BEFORE DIRECTOR HOOVER LEARNED ABOUT IT JUST AS HE WAS UNDER PRESSURE MR HOSTY BELIEVES THE WARREN COMMISSION ITSELF WAS UNDER PRESSURE FROM A PRESIDENT LYNDON JOHNSON WORRIED THAT THE ASSASSINATION MIGHT ESCALATE INTO A USCUBANSOVIET SHOWDOWN THE HOSTY THESIS WAS STRENGTHENED RECENTLY WHEN THE NATIONAL ARCHIVES RELEASED TRANSCRIPTS OF PRESIDENT JOHNSON'S TELEPHONE CONVERSATIONS IN THE WEEKS FOLLOWING THE ASSASSINATION THE TRANSCRIPTS SHOW MR JOHNSON WORRYING REPEATEDLY ABOUT NUCLEAR WAR TO CHIEF JUSTICE EARL WARREN AND SEN RICHARD B RUSSELL OF GEORGIA HE TALKED OF A WAR THAT COULD KILL 40 MILLION AMERICANS IN AN HOUR WITH THE WARREN COMMISSION MR HOSTY BELIEVES THAT OSWALD ACTING ALONE KILLED PRESIDENT KENNEDY BUT CITING A WEB OF ADMITTEDLY CIRCUMSTANTIAL EVIDENCE HE DIVERGES SHARPLY AFTER THAT THE WARREN COMMISSION AFTER INVESTIGATING LITERALLY DOZENS OF ALLEGATIONS FOUND NO EVIDENCE THAT OSWALD'S TRIP TO MEXICO WAS IN ANY WAY CONNECTED WITH THE ASSASSINATION OF PRESIDENT KENNEDY BUT MR HOSTY NOTES THAT AT THE TIME THE KENNEDY ADMINISTRATION WAS ACTIVELY ENGAGED IN ASSASSINATION PLOTS AGAINST FIDEL CASTRO AND THAT THE CUBAN LEADER HAD PUBLICLY WARNED THAT TWO COULD PLAY THIS GAME HE BELIEVES OSWALD OFFERED TO THE CUBANS AND POSSIBLY TO THE SOVIETS AS WELL TO KILL THE PRESIDENT AS IS NOW KNOWN OSWALD MET WITH THE SOVIETS' VALERIY VLADIMIROVICH KOSTIKOV REGARDED BY THE CENTRAL INTELLIGENCE AGENCY AS THE MAN IN CHARGE OF ASSASSINATIONS IN THE WESTERN HEMISPHERE THOUGH HE DID SO BEFORE MR KENNEDY SCHEDULED HIS TRIP TO DALLAS MR HOSTY THINKS NEITHER THE CUBANS NOR THE SOVIETS ENCOURAGED OSWALD AN UNSTABLE AND AMATEURISHLOOKING MAN AND WERE HORRIFIED WHEN THEY LEARNED OF WHAT HE HAD DONE IF SO THEN IN THREE CAPITALS WASHINGTON HAVANA AND MOSCOW THE OVERRIDING CONSIDERATION BECAME AVERTING NUCLEAR WAR MR HOSTY ARGUES THAT THE WARREN COMMISSION DISMISSED EVIDENCE FROM TWO UNDERCOVER AGENTS TOGETHER DESIGNATED AS SOLO SOURCE DISPATCHED BY THE FBI TO TALK WITH FIDEL CASTRO AFTER THE ASSASSINATION AS SINCE REVEALED SOLO SOURCE CONSISTED OF MORRIS CHILDS THEN TREASURER OF THE US COMMUNIST PARTY AND HIS BROTHER JACK CHILDS THEN EDITOR OF THE DAILY WORKER CASTRO TOLD THE CHILDS BROTHERS OF OSWALD'S OFFER TO KILL KENNEDY FOR THE CUBANS BECAUSE HE KENNEDY WAS THREATENING CASTRO MR HOSTY WRITES CASTRO CLAIMED HIS PEOPLE TURNED OSWALD'S OFFER DOWN MOREOVER CITING AN INTERNAL FBI SOURCE MR HOSTY ALLEGES THAT PRESIDENT JOHNSON AND ROBERT F KENNEDY ORDERED INTELLIGENCE AGENTS IN MEXICO TO STOP PURSUING A POSSIBLE CUBAN OR SOVIET CONNECTION HIS INFORMANT TELLS HIM CIA AGENTS IN MEXICO CITY WERE NEAR MUTINY AT THIS ORDER STARTLING AS IT IS THIS ASPECT OF MR HOSTY'S THEORY HAS DRAWN SUPPORT FROM THE US AMBASSADOR TO MEXICO AT THE TIME THOMAS MANN WHO HAS SAID HE RECEIVED PEREMPTORY INSTRUCTIONS TO STOP INVESTIGATING THOSE ISSUES MR HOSTY SAYS THE POSTASSASSINATION INVESTIGATION GOT OFF TO A DISASTROUS START WHEN J EDGAR HOOVER ASSURED PRESIDENT JOHNSON THAT THE FBI DIDN'T HAVE AN ACTIVE FILE ON LEE HARVEY OSWALD THEN MR HOOVER LEARNED TO HIS DISMAY THAT MR HOSTY HAD IN FACT BEEN INVESTIGATING THE OSWALDS AFTER THAT THE BUREAU'S INVESTIGATION WAS INTERTWINED WITH AN EFFORT TO MINIMIZE EMBARRASSMENT TO MR HOOVER AND TO ITSELF BASIC FACTFINDING HAD DEGENERATED INTO TELLING HOOVER WHAT HOOVER WANTED TO HEAR HE WRITES IN AN UNPUBLISHED MANUSCRIPT AGENTS LEARNED TO LIVE WITH IT THUS THE DESTRUCTION OF THE OSWALD NOTE AS MR HOSTY TELLS IT THE NOTE MADE NO MENTION OF PRESIDENT KENNEDY BUT WAS RATHER AN INDIGNANT PROTEST AGAINST FBI INTERVIEWS OF MARINA OSWALD AFTER JACK RUBY KILLED OSWALD MR HOSTY SAYS HE WAS CALLED INTO THE OFFICE OF HIS SUPERIOR WHO TOOK THE NOTE AND A MEMO EXPLAINING IT FROM A FOLDER AND SAID I DON'T EVER WANT TO SEE THESE AGAIN MR HOSTY TOOK THE NOTE TO A MEN'S ROOM TORE IT INTO PIECES AND FLUSHED IT DOWN A TOILET IN YET ANOTHER INCIDENT THAT ULTIMATELY CAME TO LIGHT TO HELP FUEL CONSPIRACY THEORIES FOR DECADES TO COME A FELLOW AGENT OMITTED FROM A REPORT THAT MR HOSTY'S NAME SPELLED HASTY APPEARED IN AN OSWALD NOTEBOOK MR HOSTY SURMISES IT WAS THERE BECAUSE MARINA OSWALD HAD TOLD HER HUSBAND ABOUT HIS INTERVIEWS OF HER THE FELLOW AGENT HE SAYS WAS TRYING TO DO HIM A FAVOR ON THE WHOLE MR HOSTY STILL BELIEVES HE DID A PROFESSIONAL JOB HE SAYS HE DOESN'T LIE AWAKE AT NIGHT AGONIZING OVER WHATIFS BUT HE SAYS RUEFULLY I WOULD RATHER READ HISTORY THAN LIVE IT 9310180019 931018 CORRECTIONS & AMPLIFICATIONS MERCER INTERNATIONAL INC WOULD OWN 70 OF DRESDEN PAPER AG AND A UNIT OF SOUTH KOREA'S SHIN HO GROUP WOULD OWN 30 IN A PROPOSED JOINT VENTURE AN ITEM FRIDAY INCORRECTLY SAID SHIN HO WOULD HAVE A 70 STAKE AND MERCER WOULD HAVE A 30 STAKE BLOCKBUSTER ENTERTAINMENT CORP AND OTHER VIDEO RETAILERS CURRENTLY GET MOVIES ON VIDEOCASSETTES BEFORE THE MOVIES ARE OFFERED TO CABLE SUBSCRIBERS ON A PAYPERVIEW BASIS AN ARTICLE WEDNESDAY INCORRECTLY INDICATED THAT MOVIES ARE DISTRIBUTED ON PAYPERVIEW FIRST CHUCK LILLIS IS EXECUTIVE VICE PRESIDENT AND CHIEF PLANNING OFFICER AT U S WEST INC HIS NAME WAS MISSPELLED IN AN ARTICLE FRIDAY IN A CHART ON EXECUTIVE COMPENSATION FOR FRIDAY'S ENTERPRISE COLUMN THE SOURCE OF THE INFORMATION WAS WILLIAM M MERCER INC RATHER THAN NATIONAL PERFORMANCE REVIEW AS THE CHART INCORRECTLY STATED 9310180018 931018 MANAGER'S JOURNAL A DIPLOMATIC APPROACH TO SUCCEEDING ABROAD BY ROBERT M KIMMITT THE SUCCESS OF THE CLINTON ADMINISTRATION'S NATIONAL EXPORT POLICY DEPENDS IN PART ON WHETHER US BUSINESS CAN UTILIZE AN UNDERVALUED OVERSEAS ASSET THE INCREASINGLY ENTREPRENEURIAL STAFFS OF US EMBASSIES AND CONSULATES IN EVERY EMBASSY ABROAD THERE ARE US AND LOCAL EMPLOYEES WHOSE SOLE RESPONSIBILITY IS TO ADVANCE US ECONOMIC INTERESTS THEY ARE OFTEN THE LEADING EXPERTS ON PARTICULAR COMMERCIAL SECTORS IN THEIR COUNTRIES OF ASSIGNMENT REGRETTABLY IN THE PAST THESE EXPERTS SPENT MUCH OF THEIR TIME SIMPLY REPORTING ON FOREIGN ECONOMIC ACTIVITY RATHER THAN AGGRESSIVELY PROMOTING US COMMERCIAL AND FINANCIAL INTERESTS SIMILARLY US COMPANY REPS OFTEN PURSUE THEIR OVERSEAS RESPONSIBILITIES WITH LITTLE OR NO CONTACT WITH US EMBASSIES IT IS HIGH TIME FOR EACH SIDE TO GET TO KNOW THE OTHER BETTER FOR THEIR PART EMBASSIES NEED TO BE BOTH RESPONSIVE AND PROACTIVE WHEN A US COMPANY CALLS FOR HELP THE COMMERCIAL OFFICERS OF THE EMBASSY SHOULD HAVE NO HIGHER PRIORITY THE PRESSING TELEGRAM WASHINGTON IS EXPECTING CAN EASILY WAIT A DAY OFTEN THE BUSINESS OPPORTUNITY CANNOT BUT EMBASSIES SHOULD NOT SIMPLY WAIT FOR CALLS THEY SHOULD REGULARLY REACH OUT TO US BUSINESS TO HELP GENERATE OPPORTUNITIES AND ADDRESS EMERGING ISSUES BEFORE THEY BECOME PROBLEMS IN THIS REGARD EVERY US AMBASSADOR ABROAD SHOULD CONSIDER HIMSELF THE CHIEF COMMERCIAL OFFICER IN THE EMBASSY BEFORE DURING AND AFTER HIS TOUR OF DUTY HE SHOULD CALL ON US BUSINESS LEADERS AS WELL AS MAKE HIS TRADITIONAL CALLS ON KEY PERSONNEL IN THE EXECUTIVE AND LEGISLATIVE BRANCHES THE BUSINESS COUNCIL FOR INTERNATIONAL UNDERSTANDING BASED IN NEW YORK AND WASHINGTON RUNS AN EXCELLENT PROGRAM THAT GETS EMBASSY OFFICERS TOGETHER WITH BUSINESS EXECUTIVES BEFORE THEY GO ABROAD AT THEIR POSTS AMBASSADORS SHOULD BE ACTIVE NOT SIMPLY HONORARY MEMBERS OF LOCAL US CHAMBERS OF COMMERCE THEY SHOULD MAKE VISITS TO US COMPANY OFFICES AND PLANTS A REGULAR PART OF THEIR ITINERARIES AS THEY TRAVEL THROUGHOUT THEIR COUNTRIES OF ASSIGNMENT THEY ALSO SHOULD REGULARLY BRING TOGETHER AS A GROUP KEY US INDUSTRY REPRESENTATIVES TO ADDRESS ISSUES OF COMMON CONCERN WHILE I WAS US AMBASSADOR IN GERMANY WE HELD FREQUENT SESSIONS WITH REPRESENTATIVES FROM THE TELECOMMUNICATIONS BANKING IRLINE INDUSTRIES AMONG MANY OTHERS OCCASIONALLY WE WOULD GATHER US COMPETITORS UNDER ONE ROOF AS THEY EYED ONE ANOTHER WARILY WE MADE CLEAR TO THE PARTICIPANTS THAT WE EXPECTED THEM TO CONTINUE TO COMPETE AGGRESSIVELY AGAINST ONE ANOTHER ONCE THE MEETING ENDED BUT THAT WE ALL SHARED AN INTEREST ENSURING A LEVEL PLAYING FIELD FOR US COMPANIES IN THE GERMAN ECONOMY WHILE US GOVERNMENT OFFICIALS HAVE A STRONGER ROLE TO PLAY IN THIS REGARD COMPANIES ALSO NEED TO BE MORE ACTIVE IN WORKING WITH US OFFICIALS TO ACHIEVE THEIR GOALS THE FOLLOWING CHECKLIST SHOULD BE OF USE TO US COMPANIES OPERATING ABROAD ESTABLISH AND MAINTAIN CONTACT WITH EXPORT PROMOTION AGENCIES IN WASHINGTON DEPENDING ON THE PRODUCTS OR SERVICES INVOLVED COMPANIES SHOULD CONTACT THE COMMERCE TREASURY AGRICULTURE STATE TRANSPORTATION OR DEFENSE DEPARTMENT AND ALSO WASHINGTONBASED GOVERNMENT FINANCIAL ENTITIES SUCH AS THE EXPORTIMPORT BANK AND THE OVERSEAS PRIVATE INVESTMENT CORP THE PLANNED INTERNATIONAL CULTURAL AND TRADE CENTER ON PENNSYLVANIA AVENUE IN WASHINGTON NOW A GAPING HOLE NEAR THE COMMERCE AND TREASURY DEPARTMENTS COULD PLAY AN IMPORTANT ROLE FOR US COMPANIES BY PROVIDING ONESTOP SHOPPING FOR MOST EXPORT ASSISTANCE SERVICES IN ADDITION TO EFFORTS IN WASHINGTON COMPANIES SHOULD ESTABLISH CONTACT WITH THE US AND FOREIGN COMMERCIAL SERVICE LOCATED IN DOZENS OF DISTRICT OFFICES THROUGHOUT THE US MAKE CONTACT WITH FOREIGN EMBASSIES AND CONSULATES IN WASHINGTON AND OTHER MAJOR CITIES IN THE US THOUGH THESE ENTITIES ARE HERE PRIMARILY TO HELP FOREIGN COMPANIES IN THE US THEIR COMMERCIAL SECTIONS ARE EXCELLENT SOURCES OF INFORMATION AND CONTACTS OVERSEAS FOREIGN CONSULATES IN NEW YORK CHICAGO LOS ANGELES AND OTHER MAJOR CITIES HAVE LONG CONSIDERED COMMERCIAL MATTERS A HIGH PRIORITY MAKE SURE THAT YOUR FOREIGNBRANCH OFFICES ARE IN REGULAR CONTACT WITH US EMBASSIES AND CONSULATES ABROAD IF A COMPANY NEEDS THE EMBASSY'S ASSISTANCE ESPECIALLY ON SHORT NOTICE THAT ASSISTANCE WILL BE FAR MORE EFFECTIVE IF IT IS BASED ON AN ESTABLISHED WELLINFORMED RELATIONSHIP DURING MY TOUR I RECEIVED SEVERAL CALLS FROM CORPORATE LEADERS ASKING FOR HELP ON CONTRACTS TO BE AWARDED THAT DAYONLY TO FIND THAT THE CALLS WERE OUR FIRST CONTACTS WITH THE COMPANIES ON THE MATTERS IN QUESTION REGULAR DIALOGUE WOULD HAVE PERMITTED US TO PROMOTE THE US COMPANIES' BIDS OVER TIME AND NOT SOLELY AT THE END OF THE PROCESS WHEN TRAVELING ABROAD A COMPANY'S TOP US EXECUTIVES SHOULD STOP BY THE EMBASSY OR NEAREST CONSULATE TO EXPLAIN THE COMPANY'S BUSINESS STRATEGY COMMERCIAL SECRETS ARE PROTECTED BY LAW IN SUCH A WAY EXECUTIVES CAN GET ADVICE ON EMERGING OPPORTUNITIES AS WELL AS A VIEW OF THE PERSONALITIES PUBLIC AND PRIVATE INTEGRAL TO THEIR BUSINESS SUCCESS VISITING CORPORATE CEOS PRESENT AN ESPECIALLY VALUABLE OPPORTUNITY FOR AMBASSADORS TO BRING TOGETHER LEADING HOSTCOUNTRY GOVERNMENT AND BUSINESS LEADERS FREQUENTLY I WAS THANKED BY GERMAN GUESTS FOR INTRODUCING THEM NOT JUST TO AMERICANS BUT TO THEIR OWN COUNTRYMEN IF YOU HAVE OR ARE SEEKING MAJOR OPPORTUNITIES IN A COUNTRY CONSIDER HOLDING A BOARD MEETING THERE THE EMBASSY CAN HELP FIND PROMINENT SPEAKERS AS WELL AS ARRANGE MEETINGS WITH CONTACTS IN GOVERNMENT AND BUSINESS DURING MY TOUR WE WERE VISITED BY THE BOARDS OF EXXON FLUOR DANIEL MOBIL MERRILL LYNCH AND PITNEY BOWES WE ALSO HELPED THE PUBLISHERS OF THIS NEWSPAPER ARRANGE A SYMPOSIUM IN BERLIN IF AN EMBASSY SERVES YOU WELL BE SURE TO SEND A NOTE OF THANKS NOT ONLY TO THE AMBASSADOR BUT ALSO TO APPROPRIATE CABINET OFFICERS AND MEMBERS OF CONGRESS MENTIONING OUTSTANDING CAREER OFFICERS BY NAME ENCOURAGES THEM TO SPEND AS MUCH TIME ON COMMERCIAL MATTERS AS THEY DO ON WHAT WERE ONCE THE TRADITIONAL DOMAINS OF DIPLOMACY I WAS PLEASED TO SEE IN MY FINAL MONTHS IN GERMANY SEVERAL EMBASSY COMMERCIAL OFFICERS PROUDLY DISPLAYING ON THEIR WALLS NOT JUST THE EXPECTED LETTERS OF COMMENDATION FROM GOVERNMENT SUPERIORS BUT ALSO LETTERS FROM US COMPANIES THAT TOOK THE TIME TO SAY THANKS THOUGH POLITICAL AND MILITARY MATTERS REMAIN IMPORTANT ELEMENTS OF OUR BILATERAL RELATIONSHIPS WITH KEY COUNTRIES THE REAL GROWTH SECTORS IN THE POSTCOLD WAR WORLD ARE IN THE AREAS OF COMMERCE AND CULTURE ADVANCING US COMMERCIAL INTERESTS IS THUS AN ESSENTIAL RESPONSIBILITY OF OUR EMBASSIES ABROAD YOUR TAX DOLLARS ALREADY SUPPORT A GROUP OF INDIVIDUALS READY TO PROVE THAT POINT BUT THEY CAN BE SUCCESSFUL ONLY IN PARTNERSHIP WITH US BUSINESS THEY ARE STANDING BY TO TAKE YOUR CALL MR KIMMITT SERVED AS AMBASSADOR TO GERMANY FROM 1991 TO 1993 9310180017 931018 TECHNOLOGY BRIEF ADVANCED MICRO DEVICES INC COMPANY UNVEILS MICROCHIP FOR HANDHELD COMPUTERS ADVANCED MICRO DEVICES INC TODAY WILL ENTER A FASTMOVING MARKET FOR MICROCHIPS USED IN HANDHELD COMPUTERS THE SEMICONDUCTOR MANUFACTURER DESCRIBES ITS NEW ELAN AM386 SC AS A SYSTEMONACHIP COMBINING A MICROPROCESSOR WITH CIRCUITRY THAT TYPICALLY TAKES FOUR OR MORE ADDITIONAL CHIPS SUNNYVALE CALIFBASED AMD SAID THE NEW PRODUCT PROCESSES 32 BITS OF DATA AT A TIME COMPARED WITH 16 BITS FOR MOST OTHER POCKETSIZED SYSTEMS BASED ON INTEL CORP'S MICROPROCESSOR ARCHITECTURE BUT VLSI TECHNOLOGY INC A SEMICONDUCTOR MAKER IN SAN JOSE CALIF RECENTLY ANNOUNCED A NEW SET OF CHIPS CALLED POLAR THAT IS DESIGNED TO MAKE 32BIT HANDHELD MACHINES SEVERAL NEW MICROPROCESSORS FOR PORTABLE COMPUTERS ARE EXPECTED TO BE DISCUSSED TOMORROW AT MICROPROCESSOR FORUM AN INDUSTRY CONFERENCE IN BURLINGAME CALIF AMD SAID ITS NEW CHIP WILL BE AVAILABLE IN THE FIRST QUARTER OF 1994 AND PRICED AT 49 EACH IN 10000PIECE QUANTITIES 9310180016 931018 SPORTS THE WORLD WILL BE WATCHING BUT WILL AMERICA BY ROY J HARRIS JR STAFF REPORTER OF THE WALL STREET JOURNAL IT SOUNDS LIKE A SURE CURE FOR INSOMNIA THE INTERNATIONAL SOCCER ASSOCIATION WILL HOLD A DRAWING DEC 19 TO DETERMINE TEAM PAIRINGS FOR NEXT YEAR'S WORLD CUP MATCHES DEATHLY BORING AGREES A SPOKESMAN FOR ABC WHICH WILL SHOW GOLF INSTEAD EVEN THOUGH NEXT YEAR IT WILL CARRY THE FIRST WORLD CUP MATCHES EVER TO BE HELD IN THE US IT'S HARD ENOUGH BRINGING IN GOOD RATINGS FOR SOCCER WHEN THERE'S ACTION THE SPOKESMAN ADDS SO WHY HAVE A DOZEN BIG US COMPANIES LINED UP TO SPONSOR THE DECEMBER DRAWING AND WHY ARE PRODUCERS SIGNING ELTON JOHN ROD STEWART AND JULIO IGLESIAS TO ENTERTAIN AND SEEKING A SUPERSTAR LIKE SYLVESTER STALLONE OR ARNOLD SCHWARZENEGGER TO JOIN DICK CLARK AS COHOST PART OF THE ANSWER IS THE VAST INTERNATIONAL TELEVISION AUDIENCE THAT THE DRAWING ALWAYS ATTRACTS INDEED THE GROUPING OF WORLD CUP TEAMS INTO DIVISIONS TURNS OUT TO BE AMONG THE MOST WATCHED PROGRAMS ON EARTH EVERY FOUR YEARS SOCCER OFFICIALS ARE TELLING SPONSORS THAT BETWEEN 450 MILLION AND 600 MILLION PEOPLE WILL TUNE INTO THE SHOW BROADCAST FROM LAS VEGAS AT NOON LOCAL TIME PRIME TIME IN EUROPE WHILE EXPECTED GLOBAL VIEWERSHIP IS LESS THAN HALF THE RECORD HELD BY THE 1990 CUP FINAL IN ROME THE DRAWING WILL PROBABLY RANK AS THIS YEAR'S MOSTWATCHED SHOW WELL AHEAD OF PRO FOOTBALL'S SUPER BOWL IN THE US THE SPANISHLANGUAGE UNIVISION NETWORK EXPECTS A HUGE AUDIENCE IN ITS 600 MARKETS FOR THOSE ASSOCIATED WITH THE LOS ANGELESBASED WORLD CUP USA '94 ORGANIZATION TRYING TO GAIN WIDER DOMESTIC RESPECT FOR THE DRAWING IS THE FIRST OF A SERIES OF CHALLENGES ORGANIZERS WHO ARE LAYING THE GROUNDWORK FOR ANOTHER ATTEMPT TO FORM A PROFESSIONAL SOCCER LEAGUE IN THE US WANT TO WIN A HEALTHY AMERICAN FOLLOWING FOR THE MONTH OF CUP COMPETITION THAT WILL CULMINATE JULY 17 AT PASADENA'S ROSE BOWL THE PREVIOUS WORLD CUP WAS ALL BUT IGNORED BY ENGLISHLANGUAGE VIEWERS IN THE US BUT AROUND THE WORLD THE 52 MATCHES ATTRACTED A CUMULATIVE AUDIENCE OF 267 BILLION ALREADY PASSIONS ARE HIGH AS NATIONAL TEAMS COMPETE TO MAKE THE FINAL QUALIFYING LIST OF 24 VIOLENCE BY ENGLISH HOOLIGANS MARRED LAST WEEK'S MATCH IN ROTTERDAM IN WHICH THE DUTCH TEAM BEAT ENGLAND AND IRAN IRAQ SAUDI ARABIA NORTH KOREA SOUTH KOREA AND JAPAN ARE PITTED AGAINST EACH OTHER THIS MONTH IN PURSUIT OF TWO QUALIFICATION SLOTS THE US AS HOST IS GUARANTEED A SPOT FOR ITS TEAM DICK CLARK PRODUCTIONS WANTS THE 90MINUTE DRAWING TO BE A FASTPACED AMERICANIZED VERSION ALMOST LIKE A GAME SHOW SAYS GENE WEED THE SHOW'S PRODUCER WHILE ITS MAIN AUDIENCE WILL BE FOREIGN ONLY ESPN AND UNIVISION WILL BROADCAST IT HERE WE HOPE THAT AMERICANS WILL GET CAUGHT UP IN IT HE SAYS TEAM HIGHLIGHTS WILL FLASH ON SCREEN AS THE NATIONAL SQUADS ARE ASSIGNED WITHIN SIX DIVISIONS FOR THE EARLY ROUNDS OF PLAY THE DIVISION A TEAM IS ASSIGNED TO CAN HELP DETERMINE THE TEAM'S SUCCESS BETWEEN DRAWINGS A MINITRAVELOGUE WILL FEATURE BRIEF STARHOSTED TOURS OF THE CITIES HOLDING MATCHES LOS ANGELES NEW YORK CHICAGO BOSTON WASHINGTON DETROIT DALLAS AND ORLANDO FLA FOR CAESARS PALACE WHICH WON THE RIGHTS TO PUT ON THE DRAWING THE WORLDWIDE BENEFIT IS NOT DEFINABLE IN MONETARY TERMS SAYS HENRY GLUCK CHAIRMAN OF PARENT CAESARS WORLD INC WHEN YOU GET EXPOSURE AT THIS LEVEL WITH THIS KIND OF DIGNITY HE SAYS IT SUGGESTS TO VISITING SOCCER FANS WHERE TO STAY AND PLAY DURING A TRIP TO THE US CAESARS RECENTLY ARRANGED TO MOVE THE DRAWING TO THE LAS VEGAS CONVENTION CENTER EXPECTING BIGGER CROWDS OF DIGNITARIES AND PRESS THAN ITS FACILITIES CAN COMFORTABLY HANDLE MR GLUCK NOTES THAT 900 MEDIA REPRESENTATIVES WILL ATTEND CAESARS' NOV 6 HEAVYWEIGHT BOXING TITLE BOUT BETWEEN RIDDICK BOWE AND EVANDER HOLYFIELD BUT 1200 ARE EXPECTED FOR THE WORLD CUP DRAWING WITH A SOPHISTICATED TICKETING SYSTEM WORLD CUP ORGANIZERS ARE MAKING IT EASY FOR FOREIGN VISITORS TO FOLLOW THEIR NATIONAL TEAMS AROUND THE US MANY HOLDERS OF THE 36 MILLION TICKETS ONE MILLION OF WHICH HAVE ALREADY BEEN SOLD WILL BUY PACKAGES THAT AUTOMATICALLY TAKE THEM TO THE APPROPRIATE DESTINATION AS THEIR TEAMS ADVANCE IN ALL WORLD CUP OFFICIALS HAVE RESERVED ABOUT 72000 ROOMS AT 640 HOTELS IN NINE CITIES FOR USE BY FANS DURING THE MONTH OF COMPETITION THE LARGEST BLOCK OF ROOMS EVER ASSEMBLED FOR AN EVENT ANHEUSERBUSCH COS SEES THE DRAWING AS A MAJOR EVENT BECAUSE IT REPRESENTS THE KICKOFF OF THE OVERALL ASSOCIATION YOU HAVE AS ONE OF THE MARKETING PARTNERS SAYS TONY PONTURO CORPORATEMEDIA VICE PRESIDENT FOR THE COMPANY'S ANHEUSERBUSCH INC UNIT THE COMPANY'S BUDWEISER BRAND HAS TWO 30SECOND SPOTS ON ESPN AND UNIVISION FOR THE DRAWING AND ITS LOGO WILL APPEAR ON BANNERS AT THE CEREMONY UNIVISION EXPECTS TO GET 20 MILLION IN OVERALL WORLD CUP ADVERTISING FROM BUDWEISER AND NINE OTHER SPONSORS INCLUDING COCACOLA CO GENERAL MOTORS CORP'S CHEVROLET UNIT AND MCDONALD'S CORP ABC RATHER THAN USING THE DRAWING AS A PRELUDE TO WORLD CUP COVERAGE WILL INTRODUCE VIEWERS TO SOCCER LATER THROUGH SEGMENTS OF ITS SATURDAY WIDE WORLD OF SPORTS PROGRAM THE EFFORT WILL BEGIN NEXT JANUARY BUILDING UP TO THE FIRST MATCH JUNE 17 WHILE EACH WORLD CUP HOST COUNTRY TRIES TO OUTDO THE LAST WITH ENTERTAINMENT DURING THE DRAWING ITALY HAD SOPHIA LOREN AND LUCIANO PAVAROTTI ON ITS PROGRAM VIEWERS AREN'T WATCHING TO SEE THE PERFORMERS THIS YEAR'S EXTRAVAGANZA MAY START LIKE A VEGAS SHOW WITH A SOCCER THEME AND A PRODUCTION NUMBER SAYS JOSEPH SMITH EXECUTIVE PRODUCER OF ENTERTAINMENT ACTIVITIES FOR WORLD CUP USA BUT THE PROGRAM IS PRIMARILY DESIGNED TO PLAY UP THE SUSPENSE OF THE DRAW WHICH INVOLVES PULLING NUMBERED BALLS FROM A LARGE BIN THE SHOW IS WHAT THOSE BALLS SAY MR SMITH SAYS ONE THING THE DRAWING WON'T BE IS A PROMOTION FOR TICKET SALES PARTLY BECAUSE GLOBAL DEMAND SO SHARPLY EXCEEDS SUPPLY WE KNOW EVERY SOCCER GAME WILL SELL OUT MR SMITH SAYS SOURCE ISL MARKETING LONDON BOXING ILLUSTRATED MAGAZINE 9310180015 931018 DISCIPLINARY MEASURES TAKEN AGAINST 4 FIRMS NASD ALSO TAKES STEPS AGAINST SOME INDIVIDUALS FOR VIOLATING RULES BY DAVE KANSAS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE NATIONAL ASSOCIATION OF SECURITIES DEALERS INC DISCLOSED DISCIPLINARY MEASURES AGAINST FOUR FIRMS AND A NUMBER OF INDIVIDUALS FOR VIOLATION OF NASD RULES AND SECURITIES LAWS CENTURY CAPITAL CORP GREENVILLE SC AND PRINCIPAL JOHN W BROWN III TRAVELERS REST SC WERE FINED 10000 JOINTLY AND INDIVIDUALLY AND MR BROWN WAS SUSPENDED FROM ASSOCIATION WITH ANY NASD MEMBER IN ANY CAPACITY FOR 30 DAYS IN ADDITION THE FIRM WAS SUSPENDED FROM EFFECTING PRINCIPAL TRANSACTIONS WITH RETAIL CUSTOMERS EXCEPT UNSOLICITED LIQUIDATING TRANSACTIONS FOR 30 DAYS AND REQUIRED TO PAY 23514 IN RESTITUTION TO PUBLIC CUSTOMERS THE SECURITIES AND EXCHANGE COMMISSION AFFIRMED THE SANCTIONS FOLLOWING AN APPEAL THE NASD SAID THE SANCTIONS WERE BASED ON FINDINGS THAT THE FIRM ACTING THROUGH MR BROWN EFFECTED PRINCIPAL TRANSACTIONS IN SIX COMMON STOCKS WITH PUBLIC CUSTOMERS AT UNFAIR PRICES THE MARKUPS ON THESE TRANSACTIONS RANGED FROM 563 TO 13333 ABOVE THE PREVAILING PRICE THIS ACTION HAS BEEN APPEALED IN FEDERAL COURT AND THE SANCTIONS AREN'T IN EFFECT PENDING CONSIDERATION OF THE APPEAL THE NASD SAID JOHN DAWSON & ASSOCIATES INC CHICAGO AND PRINCIPAL DOUGLAS F SAMUELS CHICAGO WERE FINED 15000 JOINTLY AND INDIVIDUALLY AFTER SUBMITTING A LETTER OF ACCEPTANCE WAIVER AND CONSENT IN ADDITION MR SAMUELS WAS SUSPENDED FROM ACTING AS A FINANCIAL AND OPERATIONS PRINCIPAL WITHIN ANY NASD MEMBER FIRM FOR FIVE BUSINESS DAYS THE NASD SAID THE SANCTIONS WERE BASED ON THE FINDINGS THAT THE FIRM ACTING THROUGH MR SAMUELS CONDUCTED A SECURITIES BUSINESS WHILE FAILING TO MAINTAIN ITS MINIMUM REQUIRED NET CAPITAL AND FAILED TO PREPARE OR MAINTAIN AN ACCURATE NET CAPITAL COMPUTATION THE NASD ALSO FOUND THAT THE FIRM ACTING THROUGH MR SAMUELS FILED AN INACCURATE REPORT THE FIRM AND MR SAMUELS CONSENTED TO THE FINDINGS AND SANCTIONS WITHOUT ADMITTING OR DENYING THE ALLEGATIONS PENDRICK REEVES ASSOCIATES INC NEW CANAAN CONN AND PRINCIPAL ELYAS A SEGUIN STAMFORD CONN WERE FINED 25000 JOINTLY AND INDIVIDUALLY AFTER SUBMITTING A LETTER OF ACCEPTANCE WAIVER AND CONSENT IN ADDITION MR SEGUIN IS REQUIRED TO TAKE AND SUCCESSFULLY PASS THE GENERAL SECURITIES PRINCIPAL EXAMINATION ANOTHER PRINCIPAL BRUCE R RUBIN NEW HAVEN CONN ALSO SUBMITTED A LETTER OF ACCEPTANCE WAIVER AND CONSENT AND WAS FINED 10000 AND REQUIRED TO REQUALIFY BY EXAMINATION AS A FINANCIAL AND OPERATIONS PRINCIPAL THE NASD SAID THE SANCTIONS WERE BASED ON THE FINDINGS THAT THE FIRM ACTING THROUGH MR RUBIN ENGAGED IN A SECURITIES BUSINESS WHILE FAILING TO MAINTAIN ITS REQUIRED MINIMUM NET CAPITAL AND FAILING TO PREPARE AND MAINTAIN ITS BOOKS AND RECORDS IN ADDITION THE NASD FOUND THAT MR SEGUIN WAS ACTIVELY MANAGING THE FIRM WITHOUT BEING PROPERLY QUALIFIED OR REGISTERED WITH THE NASD AS A GENERAL SECURITIES PRINCIPAL THE FIRM ALONG WITH MESSRS RUBIN AND SEGUIN DIDN'T ADMIT OR DENY THE ALLEGATIONS MR RUBIN HAD NO COMMENT NEITHER MR SEGUIN NOR THE FIRM COULD BE REACHED FOR COMMENT SACKS INVESTMENT CO AND PRINCIPAL RICHARD LAWRENCE SACKS BOTH OF NOVATO CALIF WERE FINED 15995642 JOINTLY AND INDIVIDUALLY AND MR SACKS WAS BARRED FROM ASSOCIATION WITH ANY NASD MEMBER IN ANY CAPACITY THE SEC MODIFIED THE SANCTIONS FOLLOWING AN APPEAL THE NASD SAID THE SANCTIONS WERE BASED ON ITS FINDINGS THAT THE FIRM ACTING THROUGH MR SACKS ENGAGED IN SECURITIES TRANSACTIONS WITH PUBLIC CUSTOMERS AT UNFAIR PRICES WITH MARKUPS OF 9 TO 220 OVER THE FIRM'S COST AT THE TIME IN ADDITION THE FIRM ACTING THROUGH MR SACKS FAILED TO REPORT SECURITIES TRANSACTIONS TO THE NASDAQ STOCK MARKET AND FAILED TO EMPLOY A FINANCIAL AND OPERATIONS PRINCIPAL AND A MUNICIPAL SECURITIES PRINCIPAL MOREOVER THE NASD SAID THE FIRM ACTING THROUGH MR SACKS ENGAGED IN THE SALES OF MUNICIPAL SECURITIES WITHOUT HAVING FIRST REGISTERED WITH THE MUNICIPAL SECURITIES RULEMAKING BOARD AND PAYING THE REQUIRED FEES THE FIRM AND MR SACKS ALSO ENGAGED IN SECURITIES TRANSACTIONS ON A PRINCIPAL BASIS WITHOUT OBTAINING WRITTEN APPROVAL FROM THE NASD IN VIOLATION OF ITS VOLUNTARY RESTRICTION AGREEMENT NEITHER THE FIRM NOR MR SACKS COULD BE REACHED FOR COMMENT INDIVIDUALS BARRED OR SUSPENDED INCLUDED MARVIN L BECKMAN MESA ARIZ FINED 5000 SUSPENDED FOR 90 DAYS WITHOUT ADMITTING OR DENYING THE ALLEGATIONS AND REQUIRED TO REQUALIFY BY EXAMINATION AS A REPRESENTATIVE DIRTH TERONE CAMPBELL KIRKLAND WASH FINED 40000 AND BARRED GEORGE BENJAMIN CARTER BERKELEY CALIF FINED 100000 AND BARRED WITHOUT ADMITTING OR DENYING THE ALLEGATIONS TODD CLARK ARVADA COLO FINED 25000 REQUIRED TO PAY 25000 PLUS INTEREST IN RESTITUTION TO CUSTOMERS AND BARRED MILAN LEROY DUMMER MINNEAPOLIS BARRED WITHOUT ADMITTING OR DENYING ALLEGATIONS ALSO GARY L ENGEL ARDSLEY NY FINED 25000 AND BARRED JAMES P FOLEY ATLANTA FINED 10000 AND SUSPENDED FOR TWO WEEKS WITHOUT ADMITTING OR DENYING ALLEGATIONS MICHAEL JAY GLOVER CHICAGO FINED 20000 AND BARRED WITHOUT ADMITTING OR DENYING THE ALLEGATIONS DANIEL RICHARD HAJDUK MOUNT PROSPECT ILL FINED 5000 AND SUSPENDED FOR 20 BUSINESS DAYS WITHOUT ADMITTING OR DENYING THE ALLEGATIONS ARVIS HARPER JR EDMOND OKLA FINED 5000 BARRED AND REQUIRED TO PAY 518416 IN RESTITUTION WITHOUT ADMITTING OR DENYING THE ALLEGATIONS DAVID G JACKSON INDIANAPOLIS FINED 60000 BARRED AND REQUIRED TO PAY 3493817 IN RESTITUTION ROGER J LANGE PARIS ILL FINED 5000 JOINTLY AND INDIVIDUALLY WITH A MEMBER FIRM SUSPENDED FOR THREE MONTHS REQUIRED TO REQUALIFY BY EXAMINATION AS A GENERAL SECURITIES PRINCIPAL AND PAY RESTITUTION TO CUSTOMERS WITHOUT ADMITTING OR DENYING THE ALLEGATIONS MICHAEL BEN LAVIGNE SPOKANE WASH FINED 10000 AND BARRED THIS ACTION HAS BEEN APPEALED TO THE SEC AND THE SANCTIONS OTHER THAN THE BAR AREN'T IN EFFECT PENDING CONSIDERATION OF THE APPEAL JOHN P MCDONALD MONTGOMERY ALA FINED 200000 BARRED AND REQUIRED TO PAY RESTITUTION OF 17182810 WITHOUT ADMITTING OR DENYING THE ALLEGATIONS WILLIAM B MICHAELS TULSA OKLA FINED 21000 AND SUSPENDED FOR ONE WEEK WITHOUT ADMITTING OR DENYING THE ALLEGATIONS DONNA PAVLOS MICHIGAN CITY IND FINED 1500 AND SUSPENDED FOR SIX MONTHS WITHOUT ADMITTING OR DENYING THE ALLEGATIONS ANTHONY J PUGLISI AND BESSIE LAVERNE PUGLISI BOTH OF SCOTTSDALE ARIZ MR PUGLISI WAS FINED 150000 AND BARRED AND MS PUGLISI WAS FINED 100000 AND BARRED GENE LESTER ROACH RIVERSIDE CALIF FINED 5000 JOINTLY AND SEVERALLY WITH A FORMER MEMBER FIRM AND FINED AN ADDITIONAL 219000 AND BARRED THE SEC MODIFIED THE SANCTIONS FOLLOWING AN APPEAL RICKY W STOCKTON OKLAHOMA CITY FINED 100000 BARRED AND REQUIRED TO PAY 22739205 IN RESTITUTION PHILLIP SAMUEL WILDER LEWISTON IDAHO FINED 25000 AND BARRED AND DAVID JOSEPH DAMBRO AURORA COLO FINED 2500 AND REQUIRED TO PAY 10060 IN RESTITUTION THE SEC AFFIRMED THE SANCTION FOLLOWING APPEAL NONE OF THE INDIVIDUALS LISTED ABOVE COULD BE REACHED FOR COMMENT 9310180014 931018 INTERNATIONAL BRIEF MICHELIN SA FRENCH FIRM DENIES RUMORS THAT IT PLANS A RIGHTS ISSUE FRENCH TIRE MAKER MICHELIN SA DENIED MARKET RUMORS THAT IT PLANS TO RAISE CAPITAL THROUGH A RIGHTS ISSUE MICHELIN'S SHARES SAW HEAVY SELLING LAST WEEK AS RUMORS MOUNTED THAT IT WOULD ANNOUNCE A CAPITAL INCREASE OPERATION TO RAISE FRESH CASH THE COMPANY RECENTLY REPORTED A FIRSTHALF LOSS OF 319 BILLION FRANCS 559 MILLION TRADERS SAID THE MARKET IS AWASH WITH RUMORS THAT MICHELIN WOULD ANNOUNCE A RIGHTS ISSUE AFTER OTHER FRENCH COMPANIES INCLUDING GENERALE DES EAUX SA AND SCHNEIDER SA RECENTLY ANNOUNCED SUCH OPERATIONS A MICHELIN SPOKESMAN HOWEVER SAID ON FRIDAY THAT THE COMPANY HAS NO PLANS FOR A RIGHTS ISSUE 9310180013 931018 WHO'S NEWS QVC NETWORK INC QVC NETWORK INC WEST CHESTER PA STEPHEN TOMLIN WAS NAMED TO THE NEWLY CREATED POSITION OF VICE PRESIDENT AND GENERAL MANAGER OF INTERACTIVE TECHNOLOGY THE HOME SHOPPING CHANNEL SAID MR TOMLIN 32 YEARS OLD WILL BE RESPONSIBLE FOR DEVELOPING QVC'S MULTIMEDIA TECHNOLOGIES MR TOMLIN WAS PREVIOUSLY DIRECTOR OF NEW BUSINESS FOR WALT DISNEY CO'S COMPUTER SOFTWARE AND NEW MEDIA GROUP THE COMPANY ALSO NAMED JACK COMSTOCK 44 AS VICE PRESIDENT OF TELEPHONE SALES MR COMSTOCK WAS PREVIOUSLY MIDATLANTIC REGIONAL MANAGER FOR COMPUTER HORIZONS CORP 9310180012 931018 BUSINESS BRIEF WEIRTON STEEL CORP COMPANY POSTPONES VOTE ON DOUBLING OF ITS SHARES WEIRTON STEEL CORP SAID IT POSTPONED ITS SPECIAL SHAREHOLDERS' MEETING TO NOV 11 FROM OCT 14 THE PURPOSE OF THE MEETING IS TO VOTE ON WHETHER TO DOUBLE THE NUMBER OF WEIRTON'S AUTHORIZED SHARES TO 60 MILLION A COMPANY SPOKESMAN SAID THE VOTE WAS DELAYED BECAUSE WEIRTON'S EMPLOYEES WHO OWN 77 OF THE COMPANY'S STOCK OBJECTED TO DILUTION OF THEIR STAKE IN THE COMPANY IF 30 MILLION MORE SHARES ARE ISSUED THE EMPLOYEES' STAKE WOULD BE DILUTED TO 44 A WEIRTON SPOKESMAN SAID A SPOKESMAN FOR THE INDEPENDENT STEELWORKERS' UNION WHICH REPRESENTS WEIRTON EMPLOYEES COULD NOT BE REACHED FOR COMMENT LATE FRIDAY THE WEIRTON WVABASED COMPANY SAID IT IS WORKING WITH THE UNION TO FIND A WAY TO ISSUE THE STOCK SO THAT THE EMPLOYEES' STAKE IS PRESRVED THE STEELMAKER NOW HAS ONLY 400000 SHARES TO ISSUE ON THE OPEN MARKET IT WANTS TO ISSUE MORE SHARES TO RAISE MONEY TO REDUCE DEBT THE STEELMAKER'S LONGTERM DEBT IS ABOUT 495 MILLION OR ABOUT 90 OF ITS CAPITALIZATION A SPOKESMAN SAID WEIRTON STEEL CORP PLANS TO INCREASE ITS SHARES OUTSTANDING BY 60 MILLION TO A TOTAL OF 90 MILLION OF THE ADDITIONAL 60 MILLION SHARES 30 MILLION WOULD BE SET ASIDE FOR EMPLOYEE BENEFITS PLANS AND 30 MILLION COULD BE ISSUED TO THE PUBLIC AN ARTICLE YESTERDAY INCORRECTLY STATED THAT THE STEELMAKER PLANS TO DOUBLE ITS NUMBER OF AUTHORIZED SHARES OUTSTANDING TO 60 MILLION 9310180011 931018 BUSINESS BRIEF M/ACOM CHARGE SET TO COVER COST OF JOB CUTS PLANT CLOSING M/ACOM INC SAID IT PLANS TO TAKE A PRETAX CHARGE OF ABOUT 29 MILLION IN ITS FOURTH QUARTER ENDED OCT 2 TO COVER EXPENSES FOR A 10 REDUCTION OF ITS WORK FORCE AND THE CLOSING OF A FACILITY THOMAS A VANDERSLICE CHIEF EXECUTIVE OFFICER SAID OPERATING PROFIT BEFORE THE CHARGE WAS SLIGHTLY HIGHER THAN THE 12 MILLION OR FIVE CENTS A SHARE A YEAR EARLIER RESULTS FOR THE FOURTH QUARTER WILL BE REPORTED IN MIDNOVEMBER 9310180010 931018 BUSINESS BRIEF SATELLITE TECHNOLOGY MANAGEMENT COMPANY EXPECTS TO POST ABOUT BREAKEVEN' RESULTS SATELLITE TECHNOLOGY MANAGEMENT INC EXPECTS TO POST ABOUT BREAKEVEN RESULTS FOR ITS THIRD QUARTER COMPARED WITH NET INCOME OF 1 MILLION OR 21 CENTS A SHARE A YEAR AGO EMIL YOUSSEFZADEH PRESIDENT AND CHIEF EXECUTIVE OFFICER SAID MR YOUSSEFZADEH SAID THE MAKER OF SATELLITE COMMUNICATION NETWORKS HAD THIRDQUARTER SALES SLIGHTLY UNDER 4 MILLION DOWN FROM 49 MILLION HE SAID THE COSTA MESA CALIF COMPANY HAS REBOUNDED FROM A DISAPPOINTING SECOND QUARTER IN WHICH IT RECEIVED AN ADVISORY FROM THE COMMERCE DEPARTMENT ALLEGING AN ATTEMPTED ILLEGAL SHIPMENT OF COMMUNICATIONS PRODUCTS TO IRAN THE DEPARTMENT HAD ALLEGED THE SHIPMENT WAS ILLEGAL UNDER RULES RESTRICTING NUCLEAR PROLIFERATION AS A RESULT REVENUE PLUMMETED AS WEARY CUSTOMERS PUT MANY DEALS ON HOLD MR YOUSSEFZADEH SAID 9310180009 931018 BUSINESS BRIEF CONTINENTAL AIRLINES VIETNAM AIRLINE NEGOTIATES POSSIBLE POSTEMBARGO PACT CONTINENTAL AIRLINES SAID IT IS NEGOTIATING WITH VIETNAM AIRLINE OFFICIALS FOR THE RIGHT TO FLY TO THAT NATION IF THE US TRADE EMBARGO IS LIFTED THE GROWING POSSIBILITY OF NORMAL TRADE RELATIONS BETWEEN THE US AND VIETNAM HAS ATTRACTED THE INTEREST OF AIRLINES AND OTHER BUSINESSES IN SEVERAL COUNTRIES AIR FRANCE HAS SIGNED AN AGREEMENT THAT WILL ALLOW IT TO FLY ROUTES INTO HANOI AND SAIGON IN NOVEMBER HOUSTONBASED CONTINENTAL SAID IT IS EXPLORING SEVERAL INVESTMENT MARKETING AND OPERATING RELATIONSHIPS WITH VIETNAM AIRLINES THE GOVERNMENTOWNED CARRIER 9310180008 931018 BUSINESS BRIEF ITT CORP ITT HARTFORD TO PURCHASE SKANDIA UNIT FOR 21 MILLION ITT HARTFORD LIFE INSURANCE COS SAID IN NEW YORK THAT IT AGREED TO PURCHASE THE AMERICAN SKANDIA LIFE REINSURANCE CORP UNIT OF SKANDIA GROUP CO OF SWEDEN FOR 21 MILLION ITT HARTFORD LIFE INSURANCE A UNIT OF ITT CORP SAID THE TRANSACTION REQUIRES REGULATORY APPROVAL AMERICAN SKANDIA REINSURANCE HAD REVENUE OF ABOUT 248 MILLION IN 1992 AND ASSETS OF 145 MILLION AS OF JUNE 30 ITT CORP HAS INTERESTS IN FINANCE TIMBER HOTELS AND DEFENSE 9310180007 931018 FROM GRIDLOCK TO THE GRIDIRON BY MIKE CARROLL THE CLINTON ADMINISTRATION'S PLAN TO REINVENT GOVERNMENT BY RUNNING IT MORE LIKE A BUSINESS SOUNDS GREAT AS DO MANY OF AL GORE'S SUGGESTIONS SUCH AS MAKING IT EASIER FOR TEENAGERS TO MOW GOVERNMENTOWNED LAWNS BUT WHY STOP WITH THE EXECUTIVE BRANCH LET'S REMAKE CONGRESS IN THE IMAGE OF OUR MOST DYNAMIC BUSINESS ENTERPRISE PROFESSIONAL SPORTS ATHLETES ARE FAR MORE POPULAR THAN POLITICIANS AND AMERICANS IN SURVEY AFTER SURVEY SAY THEY CARE LESS ABOUT GOVERNMENT EFFICIENCY THAN THEY DO ABOUT THIRDDOWN CONVERSION RATIOS WITH THE FOOTBALL SEASON WELL UNDERWAY WHY NOT STEAL A PAGE FROM OUR SPORTS HEROES' PLAYBOOKS AND MAKE POLITICS MORE EXCITING AND MORE REWARDING IT'S TIME TO MOVE FROM GRIDLOCK TO THE GRIDIRON FREE AGENCY WHY MUST CONGRESSMEN BE FORCED TO REPRESENT STATES MERELY BECAUSE THEY LIVE THERE THIS IS WORSE THAN BASEBALL'S OLD RESERVE CLAUSE AMEND THE CONSTITUTION TO PERMIT CONGRESSMEN TO RESIDE PERMANENTLY IN THE BELTWAY AND LET THE STATES COMPETE FREELY FOR THEM IMAGINE WHAT WEST VIRGINIA'S ROBERT BYRD COULD COMMAND ON THE OPEN MARKET CALIFORNIA WITH FAR MORE REPRESENTATIVES THAN IT NEEDS MIGHT TRADE HALFADOZEN JUNIOR MEMBERS FOR MR BYRD AND A GOVERNOR TO BE NAMED LATER WATCH CALIFORNIA'S FLAGGING ECONOMY SURGE WHEN MR BYRD MOVES THE PENTAGON TO PASADENA ELIMINATE THE SALARY CAP CONGRESSIONAL PAY MAKES NO SENSE WHY SHOULD A ROOKIE MAKE THE SAME AS A 12YEAR VET BUT RESTRICTING INCOME IS COUNTERPRODUCTIVE LEGISLATORS CAN BARELY EARN THE 140000 NOW NECESSARY TO BE CALLED WEALTHY A BALLBOY GETS THAT MUCH IN BASKETBALL MAKE THE STATES NOT THE FEDERAL GOVERNMENT PAY SALARIES WHO DO LEGISLATORS REPRESENT ANYWAY THEN ALLOW THE STATES TO PAY WHATEVER THEY WANT CASHSTRAPPED STATES MIGHT CONSIDER CORPORATE SPONSORSHIP OR JAPANESE OWNERSHIP COMMERCIAL ENDORSEMENTS FORGET THE POLITICS OF MEANING AND TRY THE COMMERCIALS OF MEAN JOE GREENE RATHER THAN SKULKING IN DARK CORNERS WITH PACPEOPLE OUR LEGISLATORS SHOULD PROUDLY ENDORSE PRODUCTS LIKE TENNIS PLAYERS THEY COULD WEAR PATCHES ON THEIR CLOTHES INSTEAD OF SLIPPING PROLOGGING LANGUAGE INTO THE BUDGET BILL TOM FOLEY COULD BECOME NATIONAL SPOKESMAN FOR WEYERHAUSER THIS WOULD GIVE HIM A STEADIER SOURCE OF INCOME THAN HAVING TO KEEP PICKING 40 OF 42 WINNERS IN THE VOLATILE IPO MARKET ENDORSEMENT POSSIBILITIES ABOUND PAT SCHROEDER MIGHT HAWK KLEENEX DON RIEGLE SAVINGS AND LOANS WATCH JOE BIDEN GIVE A NOD TO ROGAINE WHILE PHIL GRAMM RUBS CLEAN THE BIG OIL LOGO ON THE SLEEVE OF HIS SUBSIDIZED MOHAIR SUIT LEGALIZE POLITICAL BETTING THIS WILL GIVE AMERICANS A REAL STAKE IN CONGRESSIONAL VOTES JUST LIKE WE HAVE IN WEEKLY NFL POOLS WAS THERE EVER A VOTE THAT CRIED OUT MORE FOR A FRIENDLY WAGER THAN THE RECENT BUDGET SQUEAKER LIKE THE PROCEEDS FROM STATE LOTTERIES FUNDS RAISED COULD BE USED FOR SUCH ESSENTIAL GOVERNMENT SERVICES AS HELPING HARDUP CONGRESSMEN BUY POSTAGE STAMPS AND PRESIDENT CLINTON WON'T HAVE TO LOOK ANY FURTHER THAN HIS MOM FOR A NOMINEE FOR BETTING COMMISSIONER EXPANSION TALKS HAVE BEGUN WITH STATEN ISLAND ABOUT FIELDING ITS OWN TEAM WASHINGTON DC AND PUERTO RICO HAVE APPLIED FOR FRANCHISES AND CALIFORNIA MAY SPLIT INTO THREE SQUADS NOW MAY BE THE TIME TO DIVIDE THE COUNTRY INTO COMPETING CONFERENCES WITH A PLAYOFF FORMAT THIS MUST BE DONE CAREFULLY THOUGH SINCE THE PREVIOUS EXPERIMENT INVOLVING THE UNION AND CONFEDERATE LEAGUES WAS SHORTLIVED NEGOTIATE BETTER TELEVISION COVERAGE WHY ARE POLITICIANS' RATINGS SO LOW MAYBE IT'S THE CHANNEL EXCEPT FOR AMERICAN GLADIATORS YOU CAN'T BE TAKEN SERIOUSLY UNTIL YOU GO NETWORK ASK THE NATIONAL HOCKEY LEAGUE DUMP CSPAN SCHEDULE MORE MAJOR VOTES UNDER THE LIGHTS PRIME TIME AND AUCTION OFF CONGRESSIONAL COVERAGE TO THE NETWORKS A BIG CONTRACT COULD CUT THE DEFICIT OR HELP FINANCE CAMPAIGNS THEN WE WOULDN'T HAVE TO CHECK THAT BOX ON OUR INCOME TAX RETURNS ANYMORE IMAGINE THIS SCENARIO IT'S JUST PAST MIDNIGHT THE SENATE IS DEADLOCKED 5050 ON CLINTON'S HEALTH CARE PLAN ON THE SIDELINES ABC'S ROVING ISOCAM CATCHES AL GORE FINISHING THE LAST OF THE 500 PUSHUPS THAT WILL GUARANTEE HE LOOKS ABSOLUTELY CATATONIC IN PUBLIC AS A BREATHLESS NATION WATCHES HE GIVES THE THUMBSUP SIGN AND LUMBERS ONTO THE SENATE PLAYING FLOOR TO CAST THE DECISIVE VOTE WHILE JUBILANT DEMOCRATS MUG AND SHOUT HI MOM INTO THE CAMERA HILLARY DUMPS A BUCKET OF ICECOLD GATORADE OVER BILL IN THE BACKGROUND WE CAN HEAR TIPPER GORE SHOUTING MR PRESIDENT MR PRESIDENT THE PHONE MICHAEL JORDAN'S CALLING TO CONGRATULATE YOU MR CARROLL IS A WRITER IN NEW YORK 9310180006 931018 PEPPERAND SALT INSTITUTIONS ARE NOW THE MAJORITY 9310180005 931018 ECONOMY TRACKING THE ECONOMY BY ALAN YONAN JR AFTER MUCH RESISTANCE HOME CONSTRUCTION FINALLY APPEARS TO BE RESPONDING TO STRENGTHENING MARKET FUNDAMENTALS SUCH AS LOW MORTGAGE RATES AND INCREASED AFFORDABILITY HOUSING STARTS IN AUGUST JUMPED SHARPLY TO THEIR HIGHEST LEVEL IN 2 1/2 YEARS BREAKING OUT OF A LENGTHY SLUMP ANALYSTS DON'T EXPECT A REPEAT IN SEPTEMBER BUT THEY DO SAY THE MARKET IS POISED TO CONTINUE ON ITS UPWARD TRACK THE DROP IN INTEREST RATES AND INCREASE IN MORTGAGE APPLICATIONS AND HOUSING AFFORDABILITY ARE VERY POSITIVE SIGNS SAID ROBERT DEDERICK CHIEF ECONOMIST AT NORTHERN TRUST IN CHICAGO THE FUNDAMENTALS HAVE REALLY IMPROVED MR DEDERICK SAID A COMMERCE DEPARTMENT REPORT DUE OUT THIS WEEK PROBABLY WILL SHOW THAT HOUSING STARTS WERE LITTLE CHANGED IN SEPTEMBER HOLDING ONTO THE GAINS MADE IN AUGUST MORTGAGE RATES HAVE PLAYED A MAJOR ROLE IN THE IMPROVING PICTURE THE RATE ON 30YEAR FIXED MORTGAGES FELL TO 681 LAST WEEK THE LOWEST IN 25 YEARS ACCORDING TO A SURVEY OF LENDERS BY THE FEDERAL HOME LOAN MORTGAGE CORP MR DEDERICK ALSO CITED A SURVEY BY THE NATIONAL ASSOCIATION OF HOME BUILDERS THAT SHOWS BUILDERS EXPECT HIGHER BUYER TRAFFIC AND SALES DURING THE NEXT SIX MONTHS HOUSING RAN INTO A STONE WALL EARLY IN THE YEAR BUT IT SHOULD BE MOVING AHEAD NOW HE SAID 9310180004 931018 US NEEDS FAST COMPUTERS TO KEEP LEAD IN BREAKING CODES DEFENSE OFFICIAL SAYS BY JOHN J FIALKA STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE US IS CAUGHT IN AN ELECTRONIC ARMS RACE AS NATIONS USE HIGHERSPEED COMPUTERS TO CREATE MORE AND MORE ELABORATE CODES TO PROTECT THEIR SECRETS AND TO PERFORM WEAPONS TESTS A TOP DEFENSE OFFICIAL SAID IN HIS FIRST PUBLIC EXPLANATION OF A NEW POLICY TO REMOVE EXPORT CONTROLS ON MOST HIGHSPEED COMPUTERS WILLIAM J PERRY DEPUTY SECRETARY OF DEFENSE SAID IT WILL BE CRUCIAL FOR THE US TO PRODUCE MACHINES THAT CONTINUE TO BE 10 TO 100 TIMES FASTER THAN THOSE OF ADVERSARIES TO MAINTAIN ITS LEAD IN CRYPTOLOGY OR THE ART OF MAKING AND BREAKING CODES THE FACT THAT THE AVAILABILITY OF FASTER COMPUTERS WILL HELP ADVERSARIES CREATE TOUGHER CODES MR PERRY EXPLAINED WAS ONE OF THE DOWNSIDES OF THE NEW POLICY BUT HE ADDED THAT THE POLICY CHANGE WAS INEVITABLE BECAUSE INTERNATIONAL MARKETS ARE ABOUT TO BE FLOODED WITH NEW MUCH MORE POWERFUL PERSONAL COMPUTERS MANY OF THEM MADE ABROAD WE HAVE TO LIVE IN THE REAL WORLD HE TOLD A NEWS CONFERENCE NOTING THAT THE DECISION WAS FORCED LARGELY BY THE GROWING AVAILABILITY OF PENTIUM THE MICROPROCESSOR MADE BY INTEL CORP THAT MANY SAY IS LIKELY TO BE THE BRAINOFCHOICE OF THE NEW GENERATION OF PCS MR PERRY WHO DIRECTED THE DEPARTMENT'S REVIEW OF EXISTING CONTROLS ASSERTED THAT THE PROBLEMS POSED BY DECONTROL WILL BE OUTWEIGHED BY THE GREATER COMPETITIVE ABILITY OF US COMPUTER MANUFACTURERS WHO HE SAID WILL BE MORE ABLE TO CREATE MACHINES THAT WILL PROTECT THE NATION'S LONGSTANDING MILITARY ADVANTAGE IN DATA PROCESSING BY KEEPING THE MAKERS' SHARE OF THE ESTIMATED 100 BILLION WORLD COMPUTER MARKET BY REFOCUSING US EXPORT CONTROLS ON THE MORE POWERFUL COMPUTERS THOSE CAPABLE OF PERFORMING 500 MILLION THEORETICAL OPERATIONS A SECOND A MEASURE KNOWN IN THE INDUSTRY AS MTOPS THE NATION WILL BE ABLE TO KEEP ITS EDGE MR PERRY SAID ONE OF THE LESSONS LEARNED FROM INSPECTIONS OF IRAQ'S NUCLEAR AND MISSILE PROGRAMS MR PERRY NOTED WAS THAT OUR ATTEMPTS TO CONTROL TECHNOLOGY WERE SO BROAD AND DIFFUSE THAT WE WEREN'T DOING ANYTHING VERY WELL BY ELIMINATING CONTROLS OVER ITEMS IT CAN NO LONGER PROTECT THE DEFENSE DEPARTMENT OFFICIAL ADDED THE US CUSTOMS SERVICE AND OTHER AGENCIES WILL HAVE MORE STAFF AVAILABLE TO FOCUS ON THE MOST CRITICAL TECHNOLOGIES ENFORCING SPEED LIMITS ON THE RAPIDLY DEVELOPING COMPUTER MARKET IS DIFFICULT HE EXPLAINED BECAUSE SOME NEW PERSONAL COMPUTERS ARE NOW AS FAST AS THE HUGE SUPERCOMPUTERS USED BY THE MILITARY TO MODEL MISSILE FLIGHTS AND NUCLEAR WEAPONS EXPLOSIONS A DECADE AGO WHILE THE NEW PENTIUM CHIP DOESN'T REACH THE NEW SUPERCOMPUTER CRITERIA OF 2000 MTOPS MR PERRY SAID THAT THE PENTAGON EXPECTS COMPANIES WILL SOON FIELD MACHINES USING PENTIUMS IN STACKS OR MULTIPLE ARRAYS THAT WILL APPROACH THAT LIMIT MACHINES BEYOND THAT SPEED WILL REQUIRE BOTH AN EXPORT LICENSE PLUS A SAFEGUARD AGREEMENT LIMITING THEIR USE TO PEACEFUL PURPOSES WHILE MR PERRY SAID SUPPORT FOR THE NEW POLICY WAS UNANIMOUS AMONG PENTAGON OFFICIALS ONE DOCUMENT BEING CIRCULATED AMONG DEFENSE DEPARTMENT SECURITY EXPERTS ASSERTS THAT THE CHANGE WILL PERMIT THE UNSAFEGUARDED SALE OF COMPUTERS THAT WILL FAR SURPASS AND UNDERMINE THE PENTAGON'S COMPUTER SYSTEMS AND SEN JOHN GLENN CHAIRMAN OF THE SENATE GOVERNMENT AFFAIRS COMMITTEE AND AUTHOR OF MANY OF THE NATION'S LAWS CONTROLLING NUCLEAR PROLIFERATION SAID HE HAS DOUBTS ABOUT THE NEW POLICY YEARS AGO WHEN THE US SIGNED THE NUCLEAR NONPROLIFERATION TREATY THE OHIO DEMOCRAT NOTED LAST WEEK THERE WERE NO LOOPHOLES SAYING IT IS OK TO PROVIDE SUCH ASSISTANCE IF OTHERS ARE DOING SO 9310180003 931018 WHO'S NEWS PROCTER & GAMBLE CO PROCTER & GAMBLE CO CINCINNATI LARRY G DARE 53 YEARS OLD WAS NAMED PRESIDENT LAUNDRY AND CLEANING PRODUCTS PROCTER & GAMBLE USA EFFECTIVE JAN 1 THE POST WAS PREVIOUSLY HELD BY AG LAFLEY WHO WILL SUCCEED MR DARE AS PRESIDENTASIA/PACIFICJAPAN PROCTER & GAMBLE FAR EAST ALSO EFFECTIVE JAN 1 MESSRS DARE AND LAFLEY WILL CONTINUE AS GROUP VICE PRESIDENTS OF P&G A HOUSEHOLD PRODUCTS CONCERN 9310180002 931018 EUROPE'S LETHARGIC NATIONAL ECONOMIES PROMISE TO HELP SUSTAIN RALLY IN BONDS BY GLENN WHITNEY STAFF REPORTER OF THE WALL STREET JOURNAL LONDON PERHAPS WHAT HOLDS TRUE FOR SPORTS CONTESTS IS VALID FOR BONDMARKET RALLIES IT'S NOT OVER UNTIL IT'S OVER IN THE CASE OF EUROPE'S BULLISH BOND MARKET WHICH HAS ALREADY LASTED MORE THAN A YEAR GOOD TIMES WILL LIKELY CONTINUE THE KEY REASON IS THE SLUGGISH STATE OF EUROPEAN ECONOMIES RECESSION WHILE NOT GOOD FOR CORPORATIONS OR JOB SEEKERS USUALLY PRODUCES DIMINISHING INFLATION AND LOWER INTEREST RATES FOR INVESTORS IN FIXEDINCOME SECURITIES THAT USUALLY RESULTS IN RISING PRICES AND HIGHER RELATIVE YIELDS WE LOVE EUROPEAN BONDS CAN'T GET ENOUGH OF THEM SAYS JOHN HALL INTERNATIONAL ECONOMIST AT SWISS BANK CORP IN LONDON WE THINK THE RALLY STILL HAS A LONG WAY TO GO PEOPLE SHOULD BE EXTREMELY OVERWEIGHT IN EUROPEAN BONDS HE PREDICTS THAT GERMAN LONGTERM GOVERNMENTBOND YIELDS WILL FALL TO AROUND 57 BY THE END OF THE YEAR FROM THEIR CURRENT LEVEL AROUND 592 OF COURSE SHORTTERM MONEYMARKET RATES HAVE ALREADY DROPPED SUBSTANTIALLY OVER THE PAST 10 MONTHS NEARLY 45 PERCENTAGE POINTS IN FRANCE ITALY AND SPAIN BUT THAT'S BECAUSE THEY STARTED AT SUCH A RELATIVELY HIGH LEVEL OBSERVERS THINK GERMANY'S BUNDESBANK WHICH REMAINS EUROPE'S DE FACTO MONETARYPOLICYSETTING BOARD WILL LOWER KEY RATES SUBSTANTIALLY OVER THE NEXT HALF YEAR THE GERMAN DISCOUNT RATE IS WIDELY EXPECTED TO DROP TO ABOUT 5 BY THE SPRING FROM ITS CURRENT 625 THAT'S LARGELY BECAUSE THE GERMAN ECONOMY APPEARS AT BEST CAPABLE OF STAGING ONLY A LACKLUSTER RECOVERY IN 1994 IN FACT SOME ECONOMISTS ARE PREDICTING A DOUBLEDIP RECESSION THEY REASON THAT THE GERMAN MARK'S 20 TO 35 STRENGTHENING IN THE PAST YEAR AGAINST THE CURRENCIES OF GERMANY'S EUROPEAN TRADING PARTNERS WILL MEAN TOUGH TIMES FOR GERMAN EXPORTS CREDIT SUISSE FIRST BOSTON LTD RECENTLY REDUCED ITS RATING OF THE GERMAN EQUITY MARKET GIVEN THE POOR OUTLOOK TO A NEUTRAL WEIGHTING RELATIVE TO INTERNATIONAL EQUITY INDEXES FROM AN OVERWEIGHTING THERE ARE PLENTY OF GRIM NUMBERS TO BACK UP THE EXPECTATIONS OF SLUGGISHNESS MANUFACTURING ORDERS IN AUGUST WERE DOWN 2 MONTHTOMONTH AND DOWN 7 COMPARED WITH AUGUST 1992 EXPORT ORDERS DECLINED BY 14 FOLLOWING A FALL IN EXPORT DELIVERIES OF 3 IN JULY A WEAK ECONOMY WILL PROBABLY REDUCE THE POTENTIAL FOR PRICE INCREASES THAT IN TURN WILL FREE THE INFLATION FEARING BUNDESBANK TO CUT RATES FURTHER UNTIL NOW THE GERMAN CENTRAL BANK HAS HAD TO CONTEND WITH ONE OF THE HIGHEST INFLATION RATES IN EUROPE CURRENTLY 4 OUR FEELING IS THAT INTEREST RATES WILL FALL FURTHER AND FASTER THAN THE MARKET CURRENTLY BELIEVES BECAUSE WE'RE LESS OPTIMISTIC ON THE SPEED OF ECONOMIC RECOVERY SAYS PETER OPPENHEIMER INTERNATIONAL INVESTMENT STRATEGIST AT JAMES CAPEL & CO IN LONDON MR OPPENHEIMER EXPECTS THE GERMAN ECONOMY TO BE STAGNANT IN 1994 AFTER SHRINKING ABOUT 22 THIS YEAR PART OF THE RATIONALE FOR THE CURRENT BOND RALLY IS THAT SHORTTERM INTEREST RATES MUST DROP TO LEVELS SUBSTANTIALLY LOWER THAN IN PREVIOUS RECESSIONS SINCE THE RATES HAVE LESS OF A DIRECT EFFECT ON ECONOMIC GROWTH THAN THEY DID BEFORE MARKETS BECAME SO INTERNATIONAL IF THE SITUATION IN THE US AND JAPAN IS A MODEL TO GO BY EUROPE HAS MUCH CATCHING UP TO DO THREEMONTH DEPOSIT RATES ARE 322 IN THE US AND 243 IN JAPAN WHILE THEY AVERAGE ABOUT 69 ACROSS EUROPE THE PROLONGED DOWNTURN IN EUROPE HAS BROUGHT INFLATION NEAR HISTORIC LOWS IN MOST COUNTRIES PRICES ARE RISING AT A 17 ANNUAL RATE IN THE UK A PACE NOT SEEN IN MORE THAN THREE DECADES INFLATION IS ALSO BELOW 25 IN FRANCE THE NETHERLANDS DENMARK NORWAY AND IRELAND THAT LEAVES REAL YIELDS ACTUAL LONGTERM GOVERNMENTBOND YIELD MINUS INFLATION AROUND RECORD HIGHS FOR EXAMPLE REAL YIELDS ARE AROUND 36 IN FRANCE AND 51 IN THE UK IT'S CERTAINLY HARD TO ARGUE THERE'S ANY INFLATIONARY PRESSURE IN EUROPE SAYS ANDREW GARTHWAITE STRATEGIST AT SG WARBURG SECURITIES IN LONDON THE DATA STILL SUGGEST DISINFLATION AND ON THAT BASIS MOST REAL YIELDS LOOK HIGH MR GARTHWAITE AND FELLOW ASSET ALLOCATORS ARE SPENDING MUCH OF THEIR TIME THESE DAYS WEIGHING THE RELATIVE MERITS OF BONDS AND EQUITIES BUT THEY ARE CLEAR ON ONE THING EUROPE IS THE PLACE TO BE THAT CONSENSUS COMES ABOUT AS US STOCK AND BOND MARKETS LOOK DECIDEDLY NEAR A PEAK CONSIDERING THAT INTEREST RATES SEEM TO HAVE HIT BOTTOM AND THE ECONOMY IS PICKING UP ONLY SLOWLY IN JAPAN MEANWHILE A YEN NEAR HISTORIC HIGHS AGAINST OTHER MAJOR CURRENCIES HAS AMPLIFIED RISKS TO EXPORTERS ALSO EUROPEANBASED INVESTORS ARE LIKELY TO SEE YENDENOMINATED HOLDINGS DECLINE IN VALUE WHEN TRANSLATED INTO HOME CURRENCIES DURING THE NEXT 12 MONTHS HONG KONG DOESN'T SEEM TO BE AN ENTICING SPOT EITHER GIVEN THAT STOCK PRICES HAVE ALREADY CLIMBED SHARPLY RECENTLY INDEED THE HANG SENG INDEX IS UP NEARLY 15 SINCE LATE SEPTEMBER THOSE LOOKING FOR FURTHER REASONS TO BUY EUROPEAN BONDS MIGHT CONSIDER THE RATIFICATION PROCESS OF THE MAASTRICHT TREATY ON GREATER EUROPEAN COMMUNITY UNITY ROBERT THOMAS AT NATWEST TREASURY & CAPITAL MARKETS RESEARCH REASONS THAT A FAVORABLE RULING ON THE SUBJECT RECENTLY BY THE GERMAN CONSTITUTIONAL COURT DOESN'T ACCELERATE PROGRESS ON MONETARY UNION BUT DOES REMOVE AN IMPORTANT BARRIER THAT COULD HAVE DERAILED IT THE SLIGHT LESSENING OF THE CHANCE THAT THE MONETARYUNION PROCESS WILL COLLAPSE IS GOOD NEWS FOR BONDS DENOMINATED IN EUROPEAN CURRENCY UNITS MR THOMAS EXPECTS YIELD SPREADS BETWEEN ECU BONDS AND COREGROUP BONDS SUCH AS THOSE DENOMINATED IN GERMAN MARKS OR DUTCH GUILDERS TO NARROW MARGINALLY IN COMING WEEKS 9310180001 931018 INTERNATIONAL SAMSUNG INCREASES KIA MOTORS STAKE TO 8 FROM 58 BY CHANG WOO HYUK SPECIAL TO THE WALL STREET JOURNAL SEOUL SOUTH KOREA SAMSUNG GROUP SAID IT HAS INCREASED ITS STAKE IN KIA MOTORS CORP TO 8 TRIGGERING CONCERNS THAT THE CONGLOMERATE MAY BE AIMING TO TAKE CONTROL OF THE AUTO MAKER THROUGH ITS SUBSIDIARY SAMSUNG LIFE INSURANCE CO SAMSUNG SAID IT HAS BECOME KIA'S LARGEST SOUTH KOREAN SHAREHOLDER BY PURCHASING 1650000 OF ITS SHARES ON THE SEOUL BOURSE FROM EARLY JUNE TO MIDSEPTEMBER ON TOP OF THAT SAMSUNG SECURED AN ADDITIONAL 345118 SHARES THROUGH A RIGHTS ISSUES IN JULY AND STOCK DIVIDENDS RAISING THE INSURANCE COMPANY'S STAKE TO 8 FROM 58 IN EARLY JUNE ACCORDING TO SAMSUNG OFFICIALS IT NOW HOLDS 5480000 OF KIA'S SHARES WE ARE PRETTY CONCERNED SAID AN OFFICIAL OF KIA SOUTH KOREA'S SECONDLARGEST AUTO MAKER AFTER HYUNDAI MOTOR CO WE HOPE THE AIM OF THE MOVE ISN'T A MERGER AND ACQUISITION A MANAGER AT SAMSUNG LIFE SAID THE STOCK BUYING IS NOTHING BUT A MOVE MADE FOR PORTFOLIO PURPOSES WE HAVE NO INTENTION OF TRYING TO CONTROL KIA'S MANAGEMENT HE SAID SAMSUNG LIFE'S PORTFOLIO HAS BEEN CRITICIZED FOR HOLDING TOO MANY FINANCIAL ISSUES INDUSTRY WATCHERS WEREN'T FULLY CONVINCED OF THAT REASONING HOWEVER AS SAMSUNG GROUP HAS BEEN ACTIVELY PUSHING TO BRANCH INTO THE AUTO INDUSTRY THROUGH ANOTHER ONE OF ITS SUBSIDIARIES SAMSUNG HEAVY INDUSTRIES CO KIA HAS A NUMBER OF OTHER LARGE SHAREHOLDERS FORD MOTOR CO HOLDS 10 OF KIA'S STOCK UNDER A DEAL MADE IN 1986 IN ADDITION MAZDA MOTOR CORP OF JAPAN HAS CONTROLLED 8 OF KIA'S STOCK SINCE 1983 WHEN ITS BOUGHT SHARES UNDER A TECHNOLOGY TRANSFER AGREEMENT KIA'S EMPLOYEES HOLD ANOTHER 106 OF THE COMPANY 9310180162 930924 LETTERS TO THE EDITOR A GRIZZLY TALE OF CANADIAN HEALTH CARE I WOULD LIKE TO RESPOND TO DR JEROME ARNETT'S INDICTMENT OF THE CANADIAN HEALTH CARE SYSTEM CANADA'S SINGLE PAYER HEALTH SCHEME A SINGLE FAILURE EDITORIAL PAGE AUG 6 WITH A PERSONAL EXPERIENCE ON AUG 28 1992 I WAS ATTACKED BY A GRIZZLY BEAR WHILE HIKING IN YOHO NATIONAL PARK NEAR BANFF AN EYE WAS RIPPED OUT MY ARMS AND LEGS BITTEN THROUGH AND THE SKIN OF MY LIMBS FACE AND HEAD PEELED BACK IN THE UNPROVOKED MAULING CANADA PARKS SERVICE ORGANIZED THE RESCUE WHICH INCLUDED A HELICOPTER MEDEVAC TO CALGARY GENERAL HOSPITAL I WAS AN INPATIENT FOR 11 DAYS THE ITEMIZED BILLING WAS AS FOLLOWS THESE FIVE LINE ITEMS CONSTITUTED THE ENTIRE HOSPITAL BILL AT FIRST GLANCE I WAS HORRIFIED TO NOTE THE ROOM CHARGE MY BLUE SHIELD LIMIT IS 65 PER DAY HOWEVER BLUE SHIELD RECOGNIZES THE CANADIAN SYSTEM THAT ESTABLISHES AN ALLINCLUSIVE AVERAGE ROOM RATE FOR THE SERVICES AND SUPPLIES PROVIDED THEREFORE MY POLICY COVERED 100 OF THE CHARGES WHICH IF ITEMIZED AS IN THE US WOULD PROBABLY CONSIST OF DOZENS OF LINE ITEMS MANY OF WHICH WOULD BE UNINTELLIGIBLE OR DIFFICULT TO VERIFY SO WHY GO TO THE EXPENSE THE SURGICAL TEAM PERFORMED WITH SUCH SKILL THAT ONE YEAR LATER THERE IS LITTLE VISIBLE SCARRING AND MY LIMBS AND FACE ARE VERY FUNCTIONAL UNLIKE SOME OTHER BEARMAULING VICTIMS WITH SIMILAR INJURIES I FACE POSSIBLY ONLY ONE FURTHER SURGERY YET ANOTHER TESTIMONIAL TO THE CARE RECEIVED CALGARY GENERAL IS AN EXCELLENT FACILITY IT DID NOT HAVE WALLTOWALL CARPETING HOWEVER IT DID HAVE CARING NURSES AND ADMINISTRATORS SO AS THIS COUNTRY WRESTLES WITH HEALTH CARE REFORM LET'S NOT BE TOO QUICK TO JUDGE THE CANADIAN SYSTEM ON AVAILABLE STATISTICS ONLY AS DR ARNETT SEEMED TO DO WHILE OVERLOOKING THE QUALITY OF HEALTH CARE IT IS DELIVERING SEE RELATED LETTERS LETTERS TO THE EDITOR A HEALTHY DEBATE WSJ OCT 18 1993 9309240108 YY93 MM10 9310180149 930930 POLITICS & POLICY INSURANCEPREMIUM CAPS SOUND GOOD BUT WILL CLINTON PLAN KEEP COSTS DOWN BY HILARY STOUT STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON PRESIDENT CLINTON BELIEVES CAPS ON HEALTHINSURANCE PREMIUMS WILL ASSURE THAT MEDICAL PRICES ARE KEPT IN CHECK BUT WHAT IF THE CAPS DON'T WORK CRITICS SAY THE CAPS WOULD CAUSE SUCH SEVERE DISLOCATIONS IN THE HEALTHCARE SYSTEM THAT THE GOVERNMENT EVENTUALLY WOULD HAVE TO ABANDON THEM AND FACE A BUDGET DEFICIT SWELLED ENORMOUSLY BY ITS PROMISES OF GENEROUS HEALTH BENEFITS FOR ALL AMERICANS THE ADMINISTRATION INSISTS THAT THE CAPS WOULD MERELY BACKSTOP MARKET FORCES BUT IT SAYS THE GOVERNMENT AND HEALTHCARE PROVIDERS COULD MAKE ADJUSTMENTS IN BENEFITS OR PRICES IN THE UNLIKELY EVENT THE CAPS FAIL TO RESTRAIN HEALTHCARE INFLATION THIS ARGUMENT PROMISES TO BE AMONG THE MOST CONTENTIOUS OF THE ENTIRE DEBATE OVER THE HEALTH PLAN MR CLINTON OUTLINED TO CONGRESS AND THE PUBLIC LAST WEEK THE CAPS THAT UNDERGIRD THE PRESIDENT'S PROPOSAL WOULD BEGIN IN 1996 BY 1999 THEY WOULD LIMIT THE ANNUAL GROWTH IN THE AVERAGE HEALTHINSURANCE PREMIUM FOR EACH REGION TO THE GENERAL RATE OF INFLATION THAT IS A TIGHT LIDPREMIUMS CURRENTLY ARE RISING 12 A YEAR COMPARED WITH A GENERAL INFLATION RATE OF ABOUT 3 IT ALSO IS A VENTURE INTO THE UNKNOWN THE GOVERNMENT HAS NEVER TRIED TO IMPOSE A CEILING ON PRIVATE HEALTH SPENDING AND IT IS HARD TO PREDICT HOW THE SYSTEM WOULD REACT MANY PEOPLE BELIEVE THAT BY PHASING THE CAPS IN SO RAPIDLY THE ADMINISTRATION WOULD BE TAKING A BIG RISK THAT THE SYSTEM COULD BE SQUEEZED SO HARD THAT IT SNAPS THE CLINTON SYSTEM WOULD FORCE ALL HEALTH PLANS TO SELL A STANDARD FEDERALLYDEFINED PACKAGE OF HEALTH BENEFITS THAT INCLUDES COVERAGE OF EVERYTHING FROM HOSPITALIZATION TO PRESCRIPTION DRUGS TO MENTAL HEALTH TREATMENT THE PLANS ALSO WOULD HAVE TO MEET A CAPITAL STANDARD OF 500000 AND AT THE SAME TIME CHARGE A PRICE UNDER THE CAP BUT WHAT IF THE INSURANCE COMPANIES HEALTH MAINTENANCE ORGANIZATIONS AND OTHER HEALTH PLANS CAN'T PROVIDE THOSE SERVICES AT THE GOVERNMENTMANDATED COST IF THE DEMANDS PROVE TO BE TOO MUCH SAYS ROBERT REISCHAUER DIRECTOR OF THE CONGRESSIONAL BUDGET OFFICE ONE OF THREE THINGS COULD HAPPEN AMID MOUNTING POLITICAL PRESSURE THE CAPS COULD BE EASED ALTERNATIVELY THE QUALITY OR QUANTITY OF SERVICES THAT PEOPLE RECEIVE COULD BE SCALED BACK OR PAYMENTS TO DOCTORS HOSPITALS OR OTHER PROVIDERS COULD BE REDUCED IRA MAGAZINER A CHIEF ARCHITECT OF THE CLINTON HEALTH PLAN PICKS OPTION THREE IT GETS KICKED BACK TO PROVIDER INCOME IN ONE WAY OR ANOTHER HE SAYS IN SHORT DOCTORS AND OTHER HEALTH PROVIDERS WOULD MAKE LESS AND INSURANCE COMPANY PROFITS WOULD BE SQUEEZED IT'S EASY TO UNDERSTAND WHY THE PRESIDENT'S AIDE WOULD MAKE THAT CHOICE EITHER OF THE FIRST TWO OPTIONS ALLOWING PRICE INCREASES TO EXCEED THE CAPS OR CUTTING BACK SERVICES WOULD TIE THE GOVERNMENT IN KNOTS YOU FORCE A REGULATORY BODY AND THE CONGRESS INTO THE UNENVIABLE POSITION OF EITHER SHUTTING OFF HEALTH CARE OR DISMISSING THEIR STANDARDS BY EASING THE CAPS SAYS REP MICHAEL ANDREWS D TEXAS WHO JOINED A GROUP OF OTHER HOUSE MEMBERS IN SENDING A LETTER TO THE PRESIDENT LAST WEEK OPPOSING THE SOCALLED BUDGET IN THE WHITE HOUSE PLAN THEN THE PROGRAM HAS NO INTEGRITY MICHAEL GRAETZ A YALE LAW SCHOOL PROFESSOR AND A TREASURY OFFICIAL DURING THE BUSH ADMINISTRATION PREDICTS THE CAPS COULD FOLLOW THE COURSE OF THE NATIONAL DEBT CEILING CONGRESS ENACTS MANY LAWS SAYING THE BORROWING OF THE FEDERAL GOVERNMENT CAN'T GO OVER THE DEBT CEILING AND EACH YEAR CONGRESS RAISES THE CEILING TO ACCOMMODATE NEW DEBT HE SAYS ANY EASING OF THE CAPS WOULD LEAVE THE GOVERNMENT WITH A HUGE UNFUNDED LIABILITY THE CLINTON PLAN PROMISES FEDERAL SUBSIDIES TO HELP SMALL BUSINESSES AND LOWINCOME PEOPLE AFFORD HEALTH COVERAGE IF THE PRICE OF COVERAGE IS ALLOWED TO GO HIGHER THAN THE CAPS ALLOW THE COST OF THE SUBSIDIES WOULD BALLOON THAT IN TURN WOULD FORCE THE GOVERNMENT TO RAISE TAXES OR ACCEPT A POTENTIALLY HUGE INCREASE IN THE DEFICIT PRESIDENT CLINTON SEEMED TO SIGNAL HIS PREFERRED BACKUP STRATEGY LAST WEEK ASKED WHAT HE WOULD DO IF THE COSTS OF HIS HEALTH PLAN PROVE TO BE MORE THAN THE ADMINISTRATION ANTICIPATED THE PRESIDENT SAID HE FAVORED AN ANNUAL REVIEW PROCESS WHICH WOULD PERMIT US IF WE DON'T REALIZE THE SAVINGS THROUGH MANAGEMENT WE INTEND TO REALIZE TO MAKE A DECISION TO PHASE IN SOME OF THE NEWER BENEFITS OVER A LONGER PERIOD OF TIME BUT SUCH A DECISION MIGHT ANGER THE PUBLIC WHICH HAS BEEN PROMISED A COMPREHENSIVE PACKAGE OF BENEFITS ANY MIDSTREAM EFFORT TO PHASE IN THE PACKAGE MORE SLOWLY IS LIKELY TO BE SEEN AS RENEGING ON THE GOVERNMENT'S PLEDGE NEVERTHELESS SOME PEOPLE FEAR THE THIRD ALTERNATIVE STICKING TO THE CAPS AND FORCING HEALTH PLANS TO SHARPLY REDUCE PAYMENTS TO DOCTORS AND HOSPITALS COULD PROMPT THE PROVIDERS TO REDUCE SERVICES I THINK YOU'LL SEE A RAPID CHANGE IN ACCESS TO VARIOUS PROCEDURES AND TREATMENTS SAID JAMES TODD SENIOR VICE PRESIDENT OF THE AMERICAN MEDICAL ASSOCIATION WHICH OPPOSES THE CAPS YOU'LL SEE A REDUCTION IN THE AMOUNT OF HEALTH CARE GIVEN IT WILL BE HEALTH CARE BY TRIAGE YES YOU WILL HAVE UNIVERSAL ACCESS BUT TO WHAT WILL YOU HAVE ACCESS THE ADMINISTRATION SAYS NONE OF THESE OUTCOMES WILL OCCUR THERE IS SO MUCH WASTE IN THE SYSTEM OFFICIALS SAY THAT MEETING THE CAPS SHOULD BE NO PROBLEM MOREOVER THE INTENT IS THAT THE CAPS WILL NEVER BE TRIGGERED SAYS KEVIN ANDERSON A SPOKESMAN FOR THE WHITE HOUSE HEALTHCARE EFFORT THE THREAT ALONE WILL LEAD HEALTH PLANS TO NEGOTIATE TOUGH PRICE DEALS WITH DOCTORS AND HOSPITALS AND SQUEEZE OUT ADMINISTRATIVE BLOAT TO COME IN UNDER THE CEILING THE THEORY GOES BUT MR ANDERSON SAYS SUPPOSE IN 1998 ALL OF A SUDDEN TRIGGERS STARTED SNAPPING ALL OVER THE COUNTRY THE NATIONAL HEALTH BOARD WOULD MAKE A RECOMMENDATION AND CONGRESS WOULD ACT THAT WOULD BE AN INDICATOR THAT THE FOOT IS ON THE BRAKE TOO HARD IN THAT CASE THERE ARE NO BACKUP PROVISIONS BUT THERE'S ALWAYS THE UNITED STATES CONGRESS SAID WALTER ZELMAN A WHITE HOUSE HEALTH ADVISER AT A BREAKFAST WITH REPORTERS LAST WEEK SEE RELATED LETTERS LETTERS TO THE EDITOR A HEALTHY DEBATE WSJ OCT 18 1993 9309300043 YY93 MM10 9310180118 930927 PRICING HEALTH CARE CLINTON'S BIG SIN TAX ERROR BY NORMAN B TURE APPARENTLY ENCOURAGED BY ENDORSEMENTS FROM REPUBLICANS BOB DOLE AND JOHN CHAFEE FOR SIN TAXES TO FUND HEALTH CARE REFORM PRESIDENT CLINTON HAS INDICATED THAT HE'LL PROPOSE WHOPPING INCREASES IN CIGARETTE TAXES TO PAY FOR A SIGNIFICANT PART OF HIS HEALTH CARE PLAN THE STATED OBJECTIVE OF THE PROPOSED CIGARETTE EXCISE INCREASE OF 75 CENTS TO 1 A PACK IS TO RAISE ADDITIONAL TAX REVENUE PRESUMABLY TO FINANCE THE PROPOSED FEDERAL SUBSIDIZING OF SMALL BUSINESSES' MANDATED HEALTH INSURANCE PREMIUMS FOR THEIR EMPLOYEES THERE REMAINS SERIOUS DOUBT AS TO WHETHER THE ADMINISTRATION HAS CORRECTLY IDENTIFIED THE NATION'S HEALTH CARE PROBLEMS IT'S ALSO DOUBTFUL WHETHER THE PLAN WILL EFFECTIVELY ADDRESS THE PROBLEMS IT HAS IDENTIFIED BUT EVEN PUTTING THESE DOUBTS ASIDE IT IS FAIR TO ASK WHY THE PROPOSED REFORMS CALL FOR RAISING THE CIGARETTE EXCISE TAX AN ARGUMENT FOR THE TAX INCREASE MIGHT BE MADE IF IT COULD BE SHOWN THAT A DISPROPORTIONATELY LARGE NUMBER OF SMOKERS HAVE NO HEALTH INSURANCE AND UNDER THE CLINTON PLAN WILL OBTAIN COVERAGE OTHERWISE UNAVAILABLE TO THEM BUT NO EVIDENCE HAS SURFACED TO SUGGEST THAT THIS IS THE CASE THE STANDARD ARGUMENTS INSTEAD ARE THAT CIGARETTE SMOKERS RAISE THE COST OF HEALTH CARE FOR EVERYONE AND THAT BECAUSE OF THEIR SMOKINGINDUCED HEALTH PROBLEMS THEY COST THE ECONOMY LOST OUTPUT THE NOTION THAT SMOKERS ARE RESPONSIBLE FOR INCREASED HEALTH CARE COSTS STEMS FROM THE VIEW THAT THEY ARE MORE PRONE THAN NONSMOKERS TO HEART AND LUNG DISEASES AND THAT THE COST OF TREATING THEIR AILMENTS INFLATES OTHER HEALTH CARE COSTS AS WELL THERE SURELY IS SOME TRUTH TO THE IDEA THAT ANYTHING THAT INCREASES THE DEMAND FOR HEALTH CARE SERVICES IS CERTAIN TO RAISE THE UNIT PRICE AND INSOFAR AS SMOKERS ARE IN FACT ILL MORE OFTEN AND MORE SERIOUSLY THAN NONSMOKERS AND SEEK MEDICAL CARE FOR THEIR AILMENTS THEY MUST THEREBY EXERT UPWARD PRESSURE ON HEALTH CARE COSTS BUT SMOKERS AREN'T UNIQUE IN THIS RESPECT PRESUMABLY PEOPLE WHO ARE OVERWEIGHT ARE MORE PRONE TO HEART DISEASE AMONG OTHER AILMENTS PEOPLE WHO HAVE SEDENTARY JOBS AND WHO DO NOT EXERCISE SIMILARLY TEND TO HAVE HEART PROBLEMS PEOPLE WITH BAD DIETARY HABITS ARE PRONE TO A VARIETY OF DISEASES THE SAME REASONING THAT ARGUES FOR TAXING SMOKERS URGES THAT SPECIAL TAXES SHOULD BE LEVIED ON PEOPLE WHO ARE OBESE OR WHO DO NOT EXERCISE AS MUCH AS SOME BUREAUCRAT MIGHT DICTATE OR WHO EAT FOODS WITH SATURATED FATS THE DEMAND FOR HEALTH CARE FOR TERMINALLY ILL PEOPLE TENDS TO BE DISPROPORTIONATELY GREAT AS WELL THE SAME LOGIC THAT CLAIMS SMOKERS MAKE HEALTH CARE MORE EXPENSIVE FOR EVERYONE SURELY APPLIES AS WELL TO THE TERMINALLY ILL IF THIS IS THE JUSTIFICATION FOR HIKING THE TAX ON CIGARETTES THEN THE SAME LOGIC CALLS FOR A SPECIAL TAX PERHAPS A DIFFERENTIALLY HIGH INCOME TAX ON THE TERMINALLY ILL MORE FUNDAMENTALLY AT ISSUE IS WHETHER CIGARETTE SMOKERS ARE UNIQUELY RESPONSIBLE FOR THE RAPID ESCALATION OF HEALTH CARE OUTLAYS THAT HAS PROMPTED THE CLINTONS' PROPOSED CHANGES IN THE FINANCING AND DELIVERY OF HEALTH SERVICES THE EVIDENCE STRONGLY ARGUES THE CONTRARY WHILE HEALTH CARE COSTS HAVE SOARED FEDERAL CIGARETTE TAX DATA THROUGH 1992 SHOW THAT DOMESTIC CIGARETTE SALES HAVE DECLINED BY 20 SINCE PEAKING IN 1981 STATE CIGARETTE TAX DATA SHOW THE SAME TREND THE OTHER FAMILIAR CONTENTION IS THAT SMOKING COSTS THE ECONOMY THE OUTPUT THAT IS LOST WHEN SMOKERS SUFFER SMOKINGINDUCED ILLNESSES THAT KEEP THEM OFF THE JOB IF THE ALLEGED COST TO SOCIETY AS A WHOLE IS THE JUSTIFICATION FOR RAISING THE TAX ON CIGARETTES THE SAME JUSTIFICATION WOULD URGE LEVYING SOME SORT OF SPECIAL TAX ON PEOPLE PRONE TO CATCHING COLDS BUT OF COURSE THE LOSS IN ALL SUCH CASES IS NOT SUFFERED BY THE ECONOMY AS A WHOLE BUT BY THE INDIVIDUALS WHOSE INCOMES ARE LESS THAN THEY WOULD OTHERWISE BE PRESUMABLY THE HEALTH CARE PROBLEM THE CLINTONS WANT TO SOLVE IS OF NATIONAL INTEREST IF THIS IS NOT THE CASE THE FEDERAL GOVERNMENT HAS NO BUSINESS MEDDLING EVEN MORE THAN IT NOW DOES IN THE HEALTH CARE MARKET TO JUSTIFY THE EXTENSIVE AND EXPENSIVE CHANGES IN THE FUNDING AND DELIVERY OF HEALTH CARE SERVICES THE NATION'S HEALTH CARE PROBLEM MUST BE ONE THAT INVOLVES EVERYONE IN THE COUNTRY FOR THIS REASON EVERYONE IN THE COUNTRY NOT ONLY CIGARETTE SMOKERS SHOULD HELP PAY FOR THE PROPOSED REMEDIES THE PROPOSED HIKE IN THE CIGARETTE TAX IS PERFECTLY CONSISTENT WITH MR CLINTON'S TRACK RECORD TO DATE ON TAX MATTERS CONVENIENCE SEEMS TO BE HIS ONLY CRITERION THIS OF COURSE CONFORMS PERFECTLY WITH CONGRESS'S PREDISPOSITION OVER THE PAST SEVERAL YEARS TO TREAT TAX POLICY AS MERELY THE MEANS TO GET THE MOST ADDED REVENUE WITH THE LEAST POLITICAL PAIN THE ONLY PRINCIPLE TO BE FOUND IN THIS APPROACH IS THAT WHICH GUIDED BANK ROBBER WILLIE SUTTON GO WHERE THE MONEY IS YOU HAVE TO WONDER WHAT OR WHO WILL BE THE NEXT VICTIM MR TURE IS PRESIDENT OF THE INSTITUTE FOR RESEARCH ON THE ECONOMICS OF TAXATION SEE RELATED LETTERS LETTERS TO THE EDITOR A HEALTHY DEBATE WSJ OCT 18 1993 9309270051 YY93 MM10 9310180115 930924 LETTERS TO THE EDITOR WHAT MEDICAL CRISIS BRITAIN'S DOING FINE DR MAX GAMMON PAINTED A VERY MISLEADING PICTURE OF BRITAIN'S NATIONAL HEALTH SERVICE ON YOUR EDITORIAL PAGE AMONG BRITAIN'S ILLS A HEALTH CARE CRISIS SEPT 8 IN BRITAIN HEALTH CARE IS FINANCED FROM TAXATION AND THERE IS NO CHARGE TO THE PATIENT EMERGENCIES ARE ALWAYS TREATED IMMEDIATELY WHETHER THERE IS AN EMERGENCY IS OF COURSE FOR THE DOCTOR ON THE SPOT TO DECIDE OF THOSE WHO NEED A STAY IN HOSPITAL BUT NOT EMERGENCY TREATMENT HALF ARE ADMITTED WITHIN FIVE WEEKS AND ABOUT THREEQUARTERS WITHIN THREE MONTHS VERY FEW HAVE TO WAIT OVER A YEAR AND THE NUMBER IS DECLINING SHARPLY THE NUMBER OF BEDS OR THE RATIO OF BEDS TO STAFF IS A POOR INDICATOR OF THE EFFICIENCY OF THE SERVICE THANKS TO ADVANCES IN MEDICAL AND ANESTHETIC TECHNOLOGY MANY PROCEDURES NO LONGER REQUIRE A HOSPITAL STAY AND THE NUMBER OF BEDS HAS DECLINED ACCORDINGLY MORE PEOPLE ARE BEING TREATED THAN EVER BEFORE A 56 INCREASE LAST YEAR THE NUMBER OF DOCTORS HAS RISEN AND MANAGEMENT ACCOUNTS FOR LESS THAN 1 OF THE NATIONAL HEALTH SERVICE WORK FORCE NO SYSTEM IS PERFECT WE ARE ALL GRAPPLING WITH HOW TO MANAGE HEALTH CARE WHEN THE NUMBER OF PATIENTS IS INCREASING PARTICULARLY THE ELDERLY AND WHEN TREATMENT IS EVER MORE COMPLEX AND EXPENSIVE OVERALL WE ARE VERY PROUD OF WHAT THE NATIONAL HEALTH SERVICE HAS TO OFFER SEE RELATED LETTER LETTERS TO THE EDITOR A HEALTHY DEBATE WSJ OCT 18 1993 9309240106 YY93 MM10 9310180112 930923 HEALTH REFORM LICENSE TO KILL BY PJ O'ROURKE I CAN'T SEEM TO LEARN ANYTHING ABOUT PRESIDENT CLINTON'S HEALTHCARE REFORM PLAN I WATCH THE NETWORK NEWS AND DISCOVER THAT THE PLAN CANNOT BE SUMMARIZED BRIEFLY I READ THE PAPERS AND FIND THE PLAN CANNOT BE EXPLAINED AT LENGTH I LISTENED TO THE PRESIDENT HIMSELF AND HE SEEMS AT LEAST AS CONFUSED AS I AM THOUGH LESS SUCCINCTLY I ALSO DON'T KNOW WHY I'M SUPPOSED TO TAKE HEALTH ADVICE FROM A MAN WITH AN OBSESSION WITH FRENCH FRIES A WAISTLINE LIKE A BEAUTYREST MATTRESS THE JOGGING PACE OF A BEACHED SEA LION AND THE SLEEP HABITS OF A TEENAGE SLUMBER PARTY I GATHER FROM THE PRESIDENT'S SALES PITCH WE'RE SUPPOSED TO COME UP WITH A LARGE SUM OF MONEY TO INVEST IN A VAGUELY DESCRIBED DEAL THAT'S GOING TO HAVE A HUGE PAYOFF SOMEDAY ISN'T THE FCC TRYING TO CRACK DOWN ON PEOPLE WHO DO THIS SORT OF THING OVER THE PHONE BUT OUR IGNORANCE OF THE CLINTON HEALTHCARE PLAN IS OF LITTLE IMPORT UNDERSTANDING GOVERNMENT PROGRAMS IS LIKE LOOKING AT PHOTOGRAPHERS' MODELS OR BEING RUN OVER BY TRUCKS FORM IS MORE IMPORTANT THAN CONTENT THE BARE OUTLINE OF THE PLAN IS SO THICK DETAILED SPECIFICS TO COME THAT YOU CAN STAND ON IT TO PAINT THE CEILING IN MY COPY OF THE WORLD ALMANAC THE US CONSTITUTION AND THE BILL OF RIGHTS OCCUPY 4 1/2 PAGES THAT'S 4 1/2 PAGES TO RUN AN ENTIRE COUNTRY FOR MORE THAN 200 YEARS AND HALF A REAM OF FEDERAL REGULATIONS IF I SLAM MY THUMB IN THE CAR DOOR OF COURSE I HAVEN'T READ THIS HEALTHCARE REFORM PLAN OUTLINE I SUSPECT IRA MAGAZINER HAS READ THE DOCUMENT ONLY IN THE SENSE THAT YOU OR I READ THE BOOK OF INSTRUCTIONS THAT COMES WITH A BASEMENT DEHUMIDIFIER PLUS IT HASN'T BEEN RELEASED TO THE PUBLIC AND ANYWAY SAYS THE PRESIDENT THIS MIGHT NOT BE THE REAL OR FINAL PLAN BECAUSE HE'S AN OPENMINDED GUY AND WANTS TO BE BIPARTISAN AND HASN'T HAD A CHANCE TO GET EVERYBODY'S INPUT ROGER CLINTON MAY HAVE SOME BRIGHT IDEAS SOCKS MAY TOO THOUGH THE PLAN DOES NOT COVER VETERINARY EXPENSES YET WE CAN HOWEVER BE CERTAIN OF SOME FACTS ABOUT THE HEALTHCARE REFORM PLAN IT WON'T WORK NO GOVERNMENT PROPOSAL MORE COMPLICATED THAN THIS NOTE IS LEGAL TENDER FOR ALL DEBTS PUBLIC AND PRIVATE EVER WORKS AND THAT DOESN'T WORK HEALTHCARE REFORM HASN'T EVEN STARTED AND IT ISN'T WORKING THE ADMINISTRATION'S FIRST STEP WAS TO PRESENT THE NATION WITH HUNDREDS OF PAGES DESIGNED TO REDUCE PAPERWORK THE PLAN WON'T WORK AND WILL BE EXPENSIVE ALL COMPREHENSIVE GOVERNMENT ENTITLEMENT PROGRAMS GROW VASTLY LARGER AND MORE COSTLY THAN THEY WERE MEANT TO BE WITNESS MEDICARE MEDICAID FDIC AND SO FORTH AND THE ONE TIME OUR COUNTRY DID HAVE A COMPREHENSIVE GOVERNMENT ENTITLEMENT PROGRAM THAT WAS CHEAP THE HOMESTEAD ACT IT INVOLVED THE DEATH OR EXILE OF NEARLY ALL THE NATIVE PEOPLE ON THE CONTINENT OUR HEALTHCARE SYSTEM IS TOO COMPLICATED AND EXPENSIVE SO TO FIX IT PRESIDENT CLINTON IS PROPOSING THE MOST COMPLICATED AND EXPENSIVE PIECE OF LEGISLATION IN OUR NATION'S HISTORY THERE IS A MUCH SIMPLER WAY OF MAKING AMERICAN MEDICAL TREATMENT LESS EXPENSIVE JUST MAKE IT WORSE AND THIS TOO CAN BE ACCOMPLISHED UNDER THE CLINTON PLAN FEDERAL HEALTHCARE REFORM WILL DRIVE THE BEST PEOPLE OUT OF THE HEALTHCARE PROFESSIONS WHAT TYPE OF PERSON IS GOING TO BECOME A DOCTOR A NURSE OR FOR THAT MATTER A HEALTHINSURANCE EXECUTIVE JUST TO WIND UP AS A BUREAUCRATIC GOAT OR GOVERNMENT HACK STUDENTS WITH STRAIGHT A'S CAN GET MORE ENTREPRENEURIAL FREEDOM AND CHEAPER HEALTHCARE BENEFITS WASHING WINDSHIELDS AT THE ENTRANCE TO THE LINCOLN TUNNEL THERE WILL COME A DAY WHEN YOU'LL BE WHEELED IN FOR A HEART BYPASS OPERATION AND THE SURGEON WILL BE THE SAME FELLOW WHO'S NOW BEHIND THE COUNTER WHEN YOU RENEW YOUR CAR REGISTRATION AT THE DEPARTMENT OF MOTOR VEHICLES BUT LET US NOT FORGET THE MORAL DIMENSION OF HEALTHCARE REFORM EVERYONE RICH OR POOR NEEDS HEALTH CARE TO LIVE AND EVERYONE RICH OR POOR NEEDS FOOD TO LIVE THEREFORE NEXT YEAR THE CLINTON ADMINISTRATION WILL INTRODUCE LEGISLATION MANDATING FEDERAL PREPARATION OF ALL OUR MEALS MEMBERS OF THE PUBLIC HAVE A LOT OF QUESTIONS ABOUT THE PRESIDENT'S HEALTHCARE PLAN WILL IT COST ME LESS CAN I KEEP MY OWN DOCTOR IF MY KID GETS AN EXOTIC DISEASE CAN I GO BROKE LOOKING FOR A MIRACLE CURE AND THEN LAND A BIG HOLLYWOOD MOVIE CONTRACT WHEN JUNIOR'S HAIR GROWS BACK WE CAN DIVINE THE RESPONSE TO ALL THESE QUERIES AS IT IS WITH SPOUSES SO IT IS WITH GOVERNMENT SPOKESPERSONS AND LET US REMEMBER HILLARY IS BOTH IF AN ANSWER IS MORE THAN THREE WORDS LONG IT'S NO WHICH BRINGS US TO HILLARY RODHAM CLINTON HERSELF AND THE SALIENT POINT OF THE HEALTHCARE REFORM THE PRESIDENT HAS PUT A LAWYER IN CHARGE OF MAKING DOCTORS CHEAPER NEXT HE'LL BE TRYING TO GET OUR GRASS MOWED FOR LESS BY CALLING THE PLUMBER TO COME HAVE A WORD WITH THE BOY WHO DOES THE LAWN MS CLINTON'S LAWYERLED HEALTHCARE ADVISORY PANEL DID NOT HOWEVER JUST LEAP IN AND SUGGEST THAT DOCTORS START TO CHARGE BY THE MINUTE CONDUCT PHYSICAL EXAMINATIONS IN FRONT OF JURIES AND GET PAID FOR DOODLING ON PADS OF YELLOW PAPER INSTEAD THE PANEL CAREFULLY EXAMINED MEDICAL PRACTICES IN A HOST OF OTHER COUNTRIES THAT ARE GOING BROKE FROM EXCESSIVE SOCIAL SPENDING IF CANADA'S HEALTH CARE IS SO GREAT HOW COME MORE AMERICANS AREN'T APPREHENDED AT THE BORDER TRYING TO SNEAK INTO ONTARIO TO GET FREE LIPOSUCTION SUCH COMPARISONS ARE OF LIMITED VALUE ANYWAY CANADA IS A SPARSELY POPULATED NATION WITH A SHORTAGE OF GUNSHOT WOUNDS CRACK ADDICTS AND HUGE TORT JUDGMENTS WHAT CAN WE REALLY LEARN FROM A MEDICAL SYSTEM DEVOTED TO HOCKEY INJURIES AND SINUS INFECTIONS CAUSED BY TRYING TO PRONOUNCE FRENCH VOWELS WE CAN LEARN APPARENTLY TO FIX PRICES PRICE FIXING WORKED SO WELL IN THE OLD SOVIET BLOC AND IT'S STILL WORKING WITH NEW YORK CITY'S RENT CONTROLS EVERYONE KNOWS HOW EASY IT IS TO FIND AN INEXPENSIVE NICE APARTMENT IN A SAFE NEIGHBORHOOD THERE WHY IS PRICE FIXING A PUBLIC SERVICE WHEN THE GOVERNMENT DOES IT BUT A CRIME WHEN WE TRY IT AS PRIVATE INDIVIDUALS OR IS IT SUDDENLY ALL RIGHT FOR HILLARY RODHAM CLINTON TO HOLD UP A DRUG STORE PRESIDENT CLINTON IS ATTEMPTING TO CONVINCE THE AMERICAN VOTERS THAT THEY'RE GOING TO BE ABLE TO GET SICK CHEAPLY HE'S RIGHT GETTING SICK HAS ALWAYS BEEN CHEAP OFTEN FREE IT'S GETTING WELL THAT COSTS A WHOLE LOT OF MONEY WHEN THE PRICE OF AN ITEM IS FIXED ABOVE MARKET VALUE THERE IS A SURPLUS OF THAT ITEM AS THE ARABS DISCOVERED WITH OIL WHEN THE PRICE OF AN ITEM IS FIXED BELOW MARKET VALUE THAT ITEM DISAPPEARS AS THE RUSSIANS DISCOVERED WITH EVERYTHING WE HAVE HERE A BASIC LAW OF ECONOMICS THE PRICE OF HEALTH CARE WILL BE FIXED BELOW MARKET VALUE AND WE'RE ALL GOING TO DIE MR O'ROURKE IS INTERNATIONAL AFFAIRS CORRESPONDENT FOR ROLLING STONE AND AUTHOR MOST RECENTLY OF GIVE WAR A CHANCE VINTAGE SEE RELATED LETTERS LETTERS TO THE EDITOR A HEALTHY DEBATE WSJ OCT 18 1993 9309230055 YY93 MM10 9310150202 931015 SMALL BUSINESS A SPECIAL REPORT AVOIDING THE PITFALLS SLEEPLESS IN CHICAGO VIRGINIA LEWEY'S FIRST WEEK AS A CAFE OWNER TAUGHT HER WHAT A GRIND ENTREPRENEURSHIP CAN BE BY BARBARA MARSH CHICAGO IT'S THE DAY BEFORE VIRGINIA LEWEY OPENS HER FIRST BUSINESS A CAFE HERE CALLED LOGAN BEACH AND AS SHE RUNS THROUGH HER CHORES THE FORMER LAWYER IS FULL OF CONFIDENCE I HAVE A LITTLE NAGGING FEELING SHE SAYS THAT THIS ISN'T BRAIN SURGERY BUT THAT EVENING PANIC STRIKES WHILE PREPARING CHICKEN SALAD AT ABOUT 10 PM SHE NOTICES THAT THE CHICKEN ISN'T SUFFICIENTLY COOKED MY FIRST DAY AND I KILL PEOPLE SHE SAYS FRETFULLY SHE DISCARDS THE SALAD AND DROPS IT FROM HER OPENING MENU NOT LONG AFTERWARD THE CAFE'S COFFEE MAKER WHICH SHE BOUGHT USED BREAKS DOWN AND SOMETIME AROUND 3 AM THE PRINTER ATTACHED TO HER PERSONAL COMPUTER JAMS WHILE PRINTING THE MENUS THE NEXT MORNING MS LEWEY ARRIVES AT THE CAFE AT 6 O'CLOCK TO MEET HER MILK SUPPLIER HE NEVER APPEARS SUCH ARE THE TRIALS OF LAUNCHING A NEW VENTURE AN EXPERIENCE THAT CAN SHATTER ANYONE'S ILLUSIONS ABOUT THE JOYS OF OWNING A BUSINESS LIKE MANY NEW OWNERS THE 40YEAROLD MS LEWEY CHOSE ENTREPRENEURSHIP IN THE HOPE OF FINDING A FREER LIFESTYLE SHE GAVE UP A SIXFIGURE INCOME AS A LAW PARTNER AND INVESTED 28000 TO OPEN LOGAN BEACH THIS PAST SUMMER SHE DREAMED OF WEARING JEANS TO WORK BLASTING ROCK MUSIC TAKING AFTERNOON NAPS AND LURING A HIP BUSTLING CLIENTELE BY WORDOFMOUTH EMP MS LEWEY QUICKLY DISCOVERED HOW SURPRISINGLY TOUGH IT IS TO RUN A SMALL BUSINESS RESTAURANT CONSULTANTS SAY SHE MADE CLASSIC BLUNDERS IN THE WAY SHE OPENED HER CAFE MARKETED IT HANDLED THE CUSTOMERS AND TRAINED THE HELP HER SALES DURING THE FIRST SEVEN DAYS NEVER ROSE ABOVE A TRICKLE ON FRIDAY NIGHT AT THE END OF THE FIRST WEEK SHE COUNTED FIVE TABLES EMPTY OUT OF EIGHT AND CONFESSED I THOUGHT THERE WOULD BE MORE PEOPLE BY NOW CONSULTANTS SAY MS LEWEY GOT OFF TO A ROCKY START BY OPENING BEFORE SHE HAD WORKED OUT ALL THE KINKS CLARK WOLF A NEW YORK RESTAURANT CONSULTANT RECOMMENDS THAT NEW OWNERS FIRST PRACTICE ON THEIR FRIENDS INVITING THEM IN BEFORE THE OPENING TO TRY EVERYTHING ON THE MENU AT A DISCOUNTED PRICE THIS GIVES THE OWNER A CHANCE TO TRAIN THE STAFF ALERT SUPPLIERS DEVELOP EFFICIENT ROUTINES AND MAKE THE INEVITABLE MISSTEPS WITHOUT TURNING OFF THE PUBLIC ANOTHER PROBLEM IS THAT MS LEWEY IGNORED SOME MARKETING BASICS CONSULTANTS FIND IT INCREDIBLE THAT LOGAN BEACH LACKS A VISIBLE SIGN THE CAFE'S NAME PAINTED ON THE FRONT WINDOW RISES FROM GROUND LEVEL TO WAIST HEIGHT ENSURING THAT PASSING DRIVERS CAN'T SEE IT MOREOVER THE STOREFRONT ITSELF IS BARELY NOTICEABLE BEING SITUATED ON A STREET THAT GETS LITTLE FOOT TRAFFIC AND IS JUST OFF A SQUARE WHERE VAGRANTS TEND TO CONGREGATE MARKETING IS THE LIFEBLOOD OF ANY BUSINESS NOTES LLOYD M GORDON A SKOKIE ILL RESTAURANT CONSULTANT SHE NEEDS A COURSE NEVERTHELESS SOME SAY THE CAFE'S BEST ASSET IS MS LEWEY HERSELF CUSTOMERS REMARK ON HER WARM FRIENDLY MANNER SHE CHATS AS EASILY WITH THE WEEKEND YUPPIE CROWD AND THEIR KIDS AS SHE DOES WITH THE HISPANIC PROFESSIONALS GRABBING A BUSINESS LUNCH AND THE YOUNG HIPSTERS WHO LINGER OVER EVENING COFFEE IF SHE CAN LEARN FROM HER EARLY ERRORS CONSULTANTS SAY SHE WILL IMPROVE HER CAFE'S CHANCE OF SUCCESS AS IT IS FOR MANY NEW BUSINESS OWNERS MS LEWEY'S OPENING DATE WAS A MOVING TARGET SHE ORIGINALLY AIMED FOR MAY BUT SHE MISJUDGED THE TIME REQUIRED TO REMODEL HER 674SQUAREFOOT STOREFRONT INEXPERIENCE SLOWED HER DOWN AS SHE HERSELF PRIED OUT FLOOR STAPLES COMBED SECONDHAND SHOPS FOR FURNISHINGS AND EXPERIMENTED WITH THE COLOR SCHEME FIRST PAINTING A NAVY STRIPE ON THE WALL AND THEN COVERING IT WITH PALE GOLD THE FINAL RESULT A STRIKING COZY SPOT WITH A HIGH CEILING WOOD FLOOR TWO COUCHES AND LOCAL ARTISTS' WORKS ON THE WALLS THERE ARE 20 CHAIRS AND EIGHT TABLES EACH SPORTING A LAMP AND FLOWERED TABLECLOTH BUT THE TWO MONTHS OF REMODELING DELAYS COST MS LEWEY 1500 IN RENT FOR JUNE AND JULY WITHOUT ANY SALES TO OFFSET THE EXPENSE SHE HOPED THAT HER OPENING WEEK WOULD CHANGE ALL THAT HERE'S HOW IT WENT FRIDAY JULY 30 A CITY INSPECTOR VISITS LOGAN BEACH TWO WEEKS LATER THAN EXPECTED AND SAYS SHE'LL RECOMMEND MS LEWEY FOR A BUSINESS LICENSE THRILLED THE NEW PROPRIETOR DECIDES TO OPEN THE NEXT DAY RATHER THAN WAIT HOWEVER LONG IT MIGHT TAKE FOR WRITTEN APPROVAL ALTHOUGH RESTAURANTS OFTEN OPEN WITH ONLY SUCH VERBAL APPROVALS CONSULTANTS NOTE THAT MS LEWEY RISKED BEING CLOSED DOWN FOR OPERATING WITHOUT A LICENSE SHE HAS SINCE RECEIVED HER LICENSE SATURDAY JULY 31 AFTER HER STRUGGLES WITH THE CHICKEN THE COMPUTER PRINTER AND THE COFFEE MAKER AND HER FRUITLESS WAIT FOR THE MILKMAN MS LEWEY OPENS HER CAFE AT 10 AM HER MENU LISTS A VARIETY OF SPECIALTY COFFEES AND OTHER BEVERAGES MUFFINS BAGELS FRUIT SANDWICHES AND PASTRIES WITH PRICES RANGING FROM 75 CENTS FOR MILK TO 425 FOR A SANDWICH OF SLICED TURKEY BREAST WITH CHEESE WITHIN MINUTES THE CAFE FILLS WITH PROFESSIONALS AND THEIR YOUNG CHILDREN MS LEWEY IS INUNDATED WITH ORDERS FOR CHOCOLATE MILK AND ESPRESSO DRINKS SHE HAS NO HELP THE FRIENDS SHE CALLED YESTERDAY LOOKING FOR VOLUNTEERS AREN'T HERE YET AS THE WAIT FOR SERVICE STRETCHES UNCOMFORTABLY A FRIEND IN THE CROWD PITCHES IN AT THE ESPRESSO MACHINE HE DOESN'T KNOW HOW TO ADJUST THE MILK TEMPERATURE THOUGH AND SERVES THE HOT CAPPUCCINO LUKEWARM THE MILK SUPPLY DWINDLING MS LEWEY SENDS HER FRIEND'S WIFE OUT FOR EMERGENCY PROVISIONS BUT SOON THE COUNTER IS OVERFLOWING WITH DUPLICATE ITEMS FOR BY THE TIME THE WOMAN RETURNS WITH HER ORDER THE VOLUNTEERS ARE FINALLY ARRIVING WITH THEIRS AS EVERYONE SCRAMBLES BOTH THE GROCERIES AND THE CUSTOMERS GO UNATTENDED THIS IS HARDLY THE WAY MS LEWEY IMAGINED HER FIRST HALF HOUR IN BUSINESS AND SHE LATER SHE ADMITS TO FEELING EMBARRASSED ABOUT HAVING BEEN CAUGHT SO OFF GUARD THAT EVENING SHE NOTICES THAT HER COFFEE GRINDER ISN'T WORKING PROPERLY A VOLUNTEER FIGURES HE WILL REMOVE ITS BEAN CONTAINER TO ADJUST THE MACHINE BUT HE DOESN'T KNOW THAT HE SHOULD FIRST CLOSE THE CONTAINER'S TRAP WHERE BEANS FLOW INTO THE GRINDING MECHANISM AS HE LIFTS THE CONTAINER THE CAFE FLOOR IS SHOWERED WITH BEANS SUNDAY AUG 1 AFTERNOON BUSINESS IS SO SLOW THAT MS LEWEY HAS LITTLE TO DO BUT SIT LISTENING TO MARKETING TIPS FROM A LOCAL CUSTOMER RETIRED FROM A RETAILING CAREER BUT MS LEWEY IS SKEPTICAL SHE DISMISSES AS HOKEY SUCH STANDARD TECHNIQUES AS A HIGHLY PUBLICIZED GRAND OPENING HER ADVERTISING EFFORT CONSISTS OF A TOKEN 25 AD PLACED IN A LOCAL COMMUNITY GROUP'S YEARBOOK MEANWHILE SHE IS RELYING ON AN ARTIST FRIEND TO DONATE HIS TIME DESIGNING FLIERS SHE PLANS TO SPONSOR A LOCAL THEATER'S READING OF WAITING FOR GODOT IN MIDAUGUST THOUGH SHE DOESN'T EXPECT TO MAKE SUCH OCCASIONS REGULAR EVENTS MONDAY AUG 2 MS LEWEY'S EARLYMORNING COMMUTER RUSH AMOUNTS TO ONE WOMAN IN A WAY THOUGH THAT'S A BLESSING BECAUSE THE MACHINES AREN'T COOPERATING MS LEWEY'S FIRST EMPLOYEE MARY LOU RAIZ TESTS THE FAULTY COFFEE MAKER SCALDING WATER SPRAYS OUT OF THE TOP IN THE MEANTIME THE ICE MACHINE BELOW THE COUNTER HAS STOPPED WORKING MS LEWEY CALLS FOR SERVICING TWO REPAIRMEN ARRIVE PROMPTLY TINKER AND DEPART LATER DURING LUNCH A CUSTOMER POINTS OUT THAT THERE ARE DARK PARTICLES IN HIS ICE MS LEWEY THEORIZES THAT COFFEE GROUNDS HAVE FALLEN INTO THE ICE MACHINE AT NIGHT SHE LOOKS MORE CAREFULLY AND FINDS OTHER GRIT IN THE MACHINE THAT SHE CAN'T IDENTIFY THE COFFEE MAKER STILL ISN'T WORKING EITHER GIVING UP ON BOTH SHE DECIDES TO RELY INSTEAD ON A SMALL COFFEE MAKER BROUGHT FROM HOME AND HER BACKUP ICE MACHINE IN THE CAFE'S KITCHEN TUESDAY AUG 3 OPERATIONALLY THE CAFE STARTS TO CLICK MS RAIZ A FORMER TRUCKSTOP OWNER HAS LUNCH FIXINGS PREPARED BY 730 AM FOUR HOURS EARLIER THAN ON MONDAY A CATERER ARRIVES FOR THE FIRST TIME NOW MS LEWEY CAN ADD PASTA SALAD COLD POTATO SOUP GAZPACHO AND LEMON AND MOCHA DESSERT BARS TO THE SHORT MENU CUSTOMERS COMPLIMENT HER MARIO ORTIZ A COFFEE LOVER CAN'T SAY ENOUGH ABOUT THE HOUSE BLEND MR ORTIZ'S NEPHEW DAVID TRIES A CUCUMBERANDCREAMCHEESE SANDWICH THEN ORDERS TWO MORE MARGARET MCCOMBS A REALESTATE AGENT WHO IS READING AS SHE EATS SAYS SHE HATES THE ROCK MUSIC PLAYING BUT WILL BE BACK ANYWAY BECAUSE MS LEWEY SEEMS NICE FOR THE DAY MS LEWEY'S CASHREGISTER TOTAL HITS A NEW HIGH OF 279 AND HER SPIRITS RISE SHE AIMS TO AVERAGE 1000 A DAY WITHIN SIX WEEKS CONSULTANTS SAY THEY DOUBT SHE WILL EVER REACH THAT GOAL GIVEN THE CAFE'S OUTOFTHEWAY LOCATION SMALL SIZE AND INEXPENSIVE MENU BUT THEY INSIST THAT SHE HAD BETTER TAKE IN AT LEAST 500 DAILY OR LOGAN BEACH WON'T SURVIVE WEDNESDAY AUG 4 ONLY TWO TABLES ARE FILLED AT LUNCH MS LEWEY'S TOTAL FOR THE DAY DROPS TO A DISCOURAGING 156 SLEEP DEPRIVATION FINALLY CATCHES UP WITH HER THE CAFE WAS OPEN 13 HOURS ON SATURDAY 12 ON SUNDAY AND 15 ON EACH OF THE WEEKDAYS AND SHE HAS BEEN THERE EVERY MINUTE IN ADDITION TO THE SEVERAL HOURS A DAY SHE HAS SPENT ON SETUP AND CLEANUP SHE HAS SLEPT AN AVERAGE OF TWO HOURS A NIGHT SINCE OPENING THE AFTERNOON NAPS SHE DREAMED ABOUT REMAIN A FANTASY DRIVING HOME AFTER MIDNIGHT SHE FORGETS TO WAIT FOR A GREEN ARROW WHEN TURNING LEFT ONTO HER STREET POLICE OFFICERS PULL HER OVER AND SHE FEARS THAT SHE'S IN TROUBLE SHE DOESN'T HAVE HER DRIVER'S LICENSE WITH HER AND HER CAR LACKS A CITY STICKER I JUST OPENED A BUSINESS SHE EXPLAINS TO THEM I'M JUST SO TIRED SHE IS ORDERED OUT OF HER CAR AND GIVEN A LECTURE BUT THE OFFICERS LET HER GO THURSDAY AUG 5 IN HER OWN WAY MS LEWEY STARTS A MARKETING CAMPAIGN SHE POSTS FLIERS IN A NEARBY SUBWAY STATION AND ON TELEPHONE POLES SHE PAYS A LOCAL 15YEAROLD BOY 5 TO PUT UP MORE AROUND THE NEIGHBORHOOD STILL THE FLIERS THEMSELVES SEEM A BIT PUZZLING EACH FEATURES A HANDSOME BUT ENIGMATIC GRAPHIC WITH THE LOGAN BEACH NAME AND ADDRESS AND NOTHING MORE MS LEWEY INSISTS THAT LISTING THE PHONE NUMBER OR OTHER DETAILS WOULD BE HUCKSTERISH AND WOULD DETRACT FROM THE HIP IMAGE SHE WANTS TO PROJECT FRIDAY AUG 6 AFTER TRYING ALL WEEK TO REACH HER MILK DISTRIBUTOR MS LEWEY LINES UP ANOTHER TWO MEN ARRIVE WITH A DELIVERY AND PROMISE TO RETURN EVERY MONDAY AND FRIDAY BUSINESS REMAINS SLOW HOWEVER AND MS LEWEY RESOLVES TO MAKE SOME CHANGES SUCH AS BROADENING HER MENU IN ORDER TO ATTRACT MORE LOCAL BUSINESSMEN AT LUNCHTIME ONE CUSTOMER HAS NOTED THAT HER LIGHT SANDWICHES COLD SOUPS AND PASTA SALAD APPEAL MOSTLY TO WOMEN SO MS LEWEY DECIDES TO ADD GUY FOOD INCLUDING BEEFCHILI AND CHICKENVEGETABLE SOUPS ALONG WITH SEVERAL HEARTIER SANDWICHES SHE ALSO RESOLVES TO STEP UP HER MARKETING EFFORTS SHE SAYS SHE WILL MOVE QUICKLY TO LIST LOGAN BEACH IN TWO LOCAL GIVEAWAY PUBLICATIONS SHE WILL POST FLIERS IN OTHER NEIGHBORHOODS AND SHE WILL DISPLAY FLIERS IN MULTIPLES RATHER THAN SINGLY FOR GREATER EFFECT BUT WILL THERE BE A SIGN OVER THE LOGAN BEACH CAFE ANYTIME SOON PROBABLY NOT SAYS MS LEWEY I THINK IT'S BETTER TO WAIT THAN PUT UP SOMETHING I DON'T LOVE POSTSCRIPT TWO MONTHS LATER MS LEWEY IS STILL IN BUSINESS SHE NOW ENTRUSTS THE SHOP FOR SEVERAL HOURS EACH MORNING TO MS RAIZ AND SHE KEEPS LOOKING FOR WAYS TO INCREASE BUSINESS IN RECENT WEEKS SHE HAS EXPANDED HER MENU AND IMPROVED HER FLIERS PUTTING LOGAN BEACH'S PHONE NUMBER AND MENU ON THE BACK SHE ALSO PLANS TO OPEN THE CAFE'S BASEMENT FOR NIGHTLY ATTRACTIONS SUH AS POETRY SLAMS PERFORMANCEART SHOWS AND LIVE MUSIC LOGAN BEACH'S DAILY AVERAGE SALES HAVE INCHED UP TO 250 MONTHLY OPERATING LOSSES SHRANK TO 300 IN SEPTEMBER FROM 1500 IN AUGUST AND MS LEWEY INSISTS SHE SEES SIGNS THAT THE CAFE WILL SUCCEED ENOUGH TO MAKE A LITTLE MONEY IN FACT SHE EXPECTS TO BREAK EVEN THIS MONTH AND EVEN PAY HERSELF A REAL TINY BIT MS MARSH IS A STAFF REPORTER IN THE WALL STREET JOURNAL'S CHICAGO BUREAU 9310150201 931015 ECONOMY DRUG MAKERS SUED BY STORES OVER PRICING SEVEN FIRMS ARE ACCUSED OF LIMITING DISCOUNTS TO SOME CUSTOMERS BY ELYSE TANOUYE STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK A GROUP OF 20 CHAIN AND INDEPENDENT DRUGSTORES SUED SEVEN MAJOR PHARMACEUTICAL COMPANIES ALLEGING THAT THE DRUG MAKERS VIOLATED ANTITRUST LAWS BY CHARGING DIFFERENT PRICES TO DIFFERENT CUSTOMERS THE GROUP WHICH CLAIMS TO REPRESENT 5000 RETAIL DRUGSTORES ALLEGE THAT THE DRUG COMPANIES ILLEGALLY DISCRIMINATED BY REFUSING TO GIVE THE PHARMACIES THE SAME DEEP DISCOUNTS ON DRUGS THAT THE DRUG COMPANIES OFFERED TO MAILORDER COMPETITORS AND MANAGEDCARE ORGANIZATIONS THE LAWSUIT FILED IN FEDERAL COURT YESTERDAY CHALLENGES A WIDESPREAD INDUSTRY PRACTICE OF GIVING MANAGEDCARE CUSTOMERS SUCH AS HEALTHMAINTENANCE ORGANIZATIONS AND SOME BIG MAILORDER CONCERNS STEEP DISCOUNTS DRUGSTORES CLAIM THEY HAVEN'T BEEN ABLE TO GET THE SAME DISCOUNTS PUTTING THEM AT A COMPETITIVE DISADVANTAGE THE LAWSUIT WILL HAVE A SWEEPING IMPACT ON OUR INDUSTRY AND BENEFIT MILLIONS OF AMERICAN CONSUMERS IF WE ARE SUCCESSFUL SAID ALEX GRASS CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF RITE AID CORP THE DRUGSTORES SAID THEY ARE SEEKING REDRESS FOR AN ALLEGED EXCESS HUNDREDS OF MILLIONS OF DOLLARS A YEAR THEY PAY BECAUSE OF THE DISCOUNTING HE SAID THE PHARMACEUTICAL COMPANIES ARE MAKING AN EXORBITANT PROFIT ON THE PRODUCTS WE BUY THE DRUGSTORE GROUP LED BY RITE AID AND REVCO DS INC REPRESENTS ABOUT 10 OF THE COUNTRY'S RETAIL DRUGSTORES THE PHARMACEUTICAL COMPANIES TARGETED IN THE LEGAL ACTION ARE AMERICAN HOME PRODUCTS CORP CIBAGEIGY LTD'S CIBAGEIGY CORP MONSANTO CO'S GD SEARLE & CO GLAXO INC PFIZER INC SMITHKLINE BEECHAM PHARMACEUTICALS CO AND SCHERINGPLOUGH CORP ALSO NAMED AS A DEFENDANT IS MAILORDER GIANT MEDCO CONTAINMENT SERVICES INC AND TWO OF ITS SUBSIDIARIES BECAUSE THEY INDUCED MANUFACTURERS TO GRANT DISCOUNTS SAID STEVE D SHADOWEN AN ATTORNEY FOR THE DRUGSTORES SPOKESPERSONS FOR AMERICAN HOME SEARLE GLAXO CIBAGEIGY AND SMITHKLINE A UNIT OF SMITHKLINE BEECHAM PLC OF THE UK EACH DECLINED TO COMMENT ON THE LAWSUIT MEDCO OFFICIALS DIDN'T RETURN PHONE CALLS A SPOKESPERSON FOR SCHERINGPLOUGH SAID THE CHARGES LACK MERIT WE ARE CONFIDENT OF THE LEGALITY OF OUR PRICING PRACTICES THE CHARGE THAT SCHERINGPLOUGH HAS VIOLATED ANTITRUST LAWS IS BOTH RECKLESS AND GROUNDLESS WE WILL VIGOROUSLY DEFEND OURSELVES IN THIS LAWSUIT WHILE DECLINING TO COMMENT ON THE SPECIFICS OF THE LAWSUIT A PFIZER SPOKESMAN SAID THAT ITS PRODUCTS ARE PRICED IN CONFORMITY WITH ALL LEGAL REQUIREMENTS AND WE HAVE NOT ENGAGED IN PRICEFIXING OF ANY KIND MANAGEDCARE ORGANIZATIONS HAVE BEEN SUCCESSFUL IN EXTRACTING STEEP DISCOUNTS FROM PHARMACEUTICAL COMPANIES IN PART BECAUSE THEY CAN THREATEN TO SUBSTITUTE ONE DRUG FOR A CHEAPER EQUIVALENT ONE ON A FORMULARY OR THE LIST OF DRUGS THE ORGANIZATION RECOMMENDS AND SOMETIMES REQUIRES ITS DOCTORS PRESCRIBE IN ORDER TO GET OR STAY ON A FORMULARY DRUG COMPANIES OFTEN MUST OFFER STEEP DISCOUNTS TO MATCH OR BETTER PRICES OF COMPETING EQUIVALENT DRUGS BUT DRUGSTORES USUALLY MUST CARRY ALL DRUGS THAT A PHYSICIAN IN ITS COMMUNITY MIGHT PRESCRIBE AND THEY LACK THE INFLUENCE OVER PHYSICIANS THAT A MANAGEDCARE ORGANIZATION WIELDS ACCORDING TO THE DRUGSTORES THEY PAY AS MUCH AS 1245 MORE FOR DRUGS THAN MANAGEDCARE CONCERNS AMERICAN HOME'S HEART DRUG INDERAL COSTS HMOS 412 FOR 100 TABLETS BUT COMMUNITY PHARMACIES PAY 4831 THE GROUP CLAIMS SEARLE'S HEART DRUG CALAN COSTS MANAGED CARE 390 FOR 100 TABLETS WHILE DRUGSTORES PAY 2291 A SEARLE SPOKESMAN DECLINED TO VERIFY THE PRICES THE CHAIN AND INDEPENDENT DRUGSTORES JOINED FORCES EARLIER THIS YEAR TO PERSUADE THE CLINTON ADMINISTRATION TO ADDRESS THE PRICING DISPARITY IN ITS HEALTHCARE REFORM PLAN THE DRUGSTORES ARGUED THAT PHARMACEUTICAL COMPANIES WERE RAISING PRICES TO THE RETAIL SECTOR TO MAKE UP FOR DISCOUNTS TO MANAGED CARE AND THAT COSTSHIFTING WAS CREATING AN UNFAIR BURDEN ON RETAIL CUSTOMERS AS A RESULT OF THAT LOBBYING EFFORT THE ADMINISTRATION'S DRAFT HEALTH PLAN CONTAINS A PROVISION THAT WOULD SEEM TO REQUIRE DRUG COMPANIES TO GIVE ALL CUSTOMERS DISCOUNTS ON EQUAL TERMS BUT THEN LISTS SEVERAL BROAD EXCEPTIONS AND EXEMPTIONS A SPOKESMAN FOR GLAXO A UNIT OF GLAXO HOLDINGS PLC OF THE UK DEFENDED THE PRACTICE OF DISCOUNTING TO MANAGEDCARE CUSTOMERS OFFERING DIFFERENT PRICES TO DIFFERENT CUSTOMERS IS A PRACTICE THAT IS COMMON NOT ONLY IN OUR INDUSTRY BUT IN AMERICAN BUSINESS IN GENERAL HE SAID ADDING THAT DISCOUNTING IS CONSISTENT WITH THE COSTCONTAINMENT GOALS OF HEALTHCARE REFORM THE LAWSUIT WHICH WAS FILED IN FEDERAL COURT IN HARRISBURG PA CLAIMS THE DRUG COMPANIES VIOLATED LAWS AGAINST PRICE DISCRIMINATION AND PRICE FIXING NOTICEABLY ABSENT FROM THE LIST OF DEFENDANTS WERE SOME OF THE BIGGEST DRUG COMPANIES SUCH AS MERCK & CO AND BRISTOLMYERS SQUIBB CO MR GRASS HOWEVER SAID MORE DEFENDANTS MAY BE ADDED LATER AS FURTHER EVIDENCE IS ACCUMULATED JOHN J MILES A WASHINGTON DCBASED ATTORNEY AT LAW FIRM OBER KALER GRIMES & SHRIVER SAID IT IS ILLEGAL FOR A SELLER TO CHARGE COMPETING PURCHASERS DIFFERENT PRICES FOR THE SAME PRODUCT WHEN THAT PRICE DIFFERENCE INJURES COMPETITION BUT THEY CAN CHARGE DIFFERENT PRICES IF IT COSTS THE SELLER LESS TO DEAL WITH ONE CUSTOMER THAN ANOTHER OR IF THE LOWER PRICE IS OFFERED TO MEET A COMPETITOR'S LOW PRICE UNDER PRICEFIXING LAWS COLLABORATION AMONG MANUFACTURERS MUST BE PROVEN HE SAID RITE AID'S MR GRASS SAID THERE ISN'T ANYTHING TO STOP DRUG COMPANIES FROM SIMPLY RAISING PRICES TO MANAGED CARE IF THEY'RE FORCED TO STOP GIVING PREFERENTIAL DISCOUNTS BUT GIVEN THE PUBLIC SCRUTINY OF DRUG MANUFACTURERS' PRICING POLICIES IT'S QUESTIONABLE THEY WOULD RAISE PRICES HE SAID ALTHOUGH IT ISN'T INVOLVED IN THE LAWSUIT THE NATIONAL ASSOCIATION OF CHAIN DRUG STORES A TRADE GROUP REPRESENTING 160 COMPANIES SAID IN A STATEMENT THAT THE SUIT REFLECTS THE OVERALL CONSENSUS OF THE CHAIN DRUGSTORE INDUSTRY AND CONTENDED THAT AN END TO DIFFERENTIAL PRICING WOULD LOWER RETAIL PRICES FOR CONSUMERS 9310150200 931015 REVAMPED CITICORP GROUP LOOKS TO EMERGING MARKETS BY MICHAEL R SESIT STAFF REPORTER OF THE WALL STREET JOURNAL LONDON REHABILITATED REORGANIZED AND REDIRECTED CITIBANK'S ASSETMANAGEMENT ARM IS ABOUT TO REENTER THE US TAXEXEMPT PENSION FUND AND NONPROFIT INSTITUTIONAL MARKET FROM WHICH IT RETREATED FIVE YEARS AGO UNLIKE MANY LARGE US INVESTMENT MANAGERS THOUGH AMERICA'S BIGGEST BANK WON'T PROMOTE ITS PROWESS WITH US STOCKS AND BONDS INSTEAD IT INTENDS TO EMPHASIZE ITS INTERNATIONAL INVESTMENT CAPABILITIES WHERE IT FEELS THE BANK'S 93 OFFICES AND 27 INVESTMENT CENTERS WORLDWIDE GIVE IT A UNIQUE ADVANTAGE SPECIFICALLY CITIBANK GLOBAL ASSET MANAGEMENT THE BANK'S REVAMPED MONEYMANAGEMENT OPERATION WITH 735 BILLION UNDER MANAGEMENT INTENDS TO PUSH ITS EMERGINGMARKET CAPABILITIES 20 PROFESSIONAL MONEY MANAGERS LOCATED IN 11 DEVELOPING COUNTRIES WHO TRACK ECONOMIC AND BUSINESS TRENDS IN 25 EMERGINGMARKET COUNTRIES AND CURRENTLY MANAGE 22 BILLION IN 16 OF THEM IT WILL ALSO SEEK EUROPEAN EQUITY AND GLOBAL FIXEDINCOME MANDATES FROM ERISA ACCOUNTS IN THE US THE 1974 EMPLOYEE RETIREMENT INCOME SECURITY ACT SETS THE GUIDELINES FOR PENSIONFUND MANAGEMENT WE ARE FOCUSING ON WHAT WE SEE AS THE FASTESTGROWING INVESTMENT MARKETS GLOBALLY IN THE US IT ISN'T OUR INTENTION TO MAKE A MAJOR THRUST TO ACQUIRE BALANCED STOCK AND BOND US INSTITUTIONAL ACCOUNTS SAYS W NEVILLE BOWEN CHIEF EXECUTIVE OF CGAM OUR MAIN FOCUS IS EMERGING MARKETS THAT'S WHERE WE BELIEVE WE HAVE ENORMOUS COMPETITIVE STRENGTHS HE NOTES THAT THE CITICORP UNIT'S GLOBAL BANKING NETWORK HELPS FEED BUSINESS TO ITS MONEYMANAGEMENT UNIT AND THAT CITIBANK HAS HAD OFFICES IN THE PHILIPPINES AND SINGAPORE SINCE 1902 AND ARGENTINA BRAZIL AND CHILE SINCE WORLD WAR I THERE ARE A LOT OF PEOPLE GOING INTO EMERGING MARKETS AND THEY HAVE A MAN AND A DOG IN SOME DEVELOPING COUNTRY CAPITALS AND SOMEONE IN TOKYO AND LONDON AND CLAIM TO BE EMERGINGMARKET MANAGERS SAYS MR BOWEN WE'VE BEEN IN THESE MARKETS SINCE THE BEGINNING OF THE CENTURY ONE OF SUCCESSES OF CITI IS THAT IT IS CONSIDERED A DOMESTIC FIRM IN A FOREIGN MARKET SAYS SUSAN DOUSE AN EMERGINGMARKET SPECIALIST AT R WATSON & SONS AN INVESTMENT CONSULTING FIRM CITI'S CHALLENGE WILL BE TO RETAIN THESE PEOPLE AS MORE FIRMS ENTER THESE EMERGING MARKETS CITIBANK'S MAJOR US COMPETITORS IN EMERGING MARKETS INCLUDE TEMPLETON INTERNATIONAL A SUBSIDIARY OF FRANKLIN RESOURCES INC SCUDDER STEVENS & CLARK MORGAN STANLEY ASSET MANAGEMENT A UNIT OF MORGAN STANLEY GROUP INC BATTERYMARCH FINANCIAL MANAGEMENT EMERGING MARKETS INVESTORS CORP CAPITAL INTERNATIONAL INC AND BEA ASSOCIATES INC A UNIT OF CS HOLDING ACCORDING TO PENSION CONSULTANTS OVERSEAS THEY INCLUDE TWO BRITISH FIRMS BARING ASSET MANAGEMENT LTD AND FOREIGN & COLONIAL EMERGING MARKETS LTD AND HONG KONGBASED JARDINE FLEMING INVESTMENT MANAGEMENT A JOINT VENTURE OF ROBERT FLEMING HOLDINGS LTD AND JARDINE MATHESON HOLDINGS LTD EMERGING STOCK MARKETS ARE HOT FOR INSTANCE THE TURKISH STOCK MARKET HAS SOARED 174 IN DOLLAR TERMS THIS YEAR ACCORDING TO INTERNATIONAL FINANCE CORP A WORLD BANK ARM BRAZIL IS UP 89 INDONESIA AND MALAYSIA 58 JORDAN AND THE PHILIPPINES 46 AND PORTUGAL 41 DURING THE PAST TWO YEARS CGAM HAS OUTPERFORMED GLOBAL EMERGINGMARKET INDEXES BY SIX TO SEVEN PERCENTAGE POINTS ACCORDING TO ALAN PENDLETON HEAD OF CGAM'S EMERGING MARKET OPERATIONS INVESTING IN DEVELOPINGCOUNTRY STOCK MARKETS IS THE NEAREST THING TO A FREE LUNCH HE SAYS WHILE CITIBANK DOES MANAGE MONEY FOR WEALTHY INDIVIDUALS FOREIGN CORPORATIONS AND GOVERNMENTS IN THE US STOCK AND BOND MARKET MR BOWEN SEES THE US DOMESTIC DEFINEDBENEFIT PENSIONFUND MARKET AS A MATURING BUSINESS BESET WITH STAGNANT GROWTH BRUTAL COMPETITION AND LOW FEES MANY COMPANIES' PENSION FUNDS ARE OVERFUNDED CONTRIBUTIONS ARE SLOWING AND THE INCREASING USE OF INDEX FUNDS THAT USE COMPUTERS TO MATCH THE PERFORMANCE OF STOCK AND BOND MARKETS THREATEN TO DRIVE MANAGEMENT FEES DOWN CITIBANK SOLD ITS DOMESTIC MONEYMANAGEMENT UNIT WITH 175 BILLION IN ASSETS TO USF&G CORP FOR 1025 MILLION IN 1988 THE UNIT WHICH WAS BEST KNOWN FOR ITS FIXEDINCOME STRENGTH HAD LOST SOME ASSETS AND POSTED MEDIOCRE EQUITY RETURNS IT WAS ALSO A PERIOD IN WHICH SEVERAL US BANKS IN NEED OF CAPITAL INFUSIONS AND UNABLE TO COPE WITH THE CLASH BETWEEN BANKING AND INVESTMENT CULTURES SOLD THEIR MONEYMANAGEMENT OPERATIONS CITIBANK RETAINED THOSE OPERATIONS THAT MANAGE MONEY FOR WEALTHY INDIVIDUALS INSTITUTIONS INVESTING IN FOREIGN MARKETS AND US REAL ESTATE AND ITS SOCALLED LIQUIDITY ACCOUNTS IN WHICH CORPORATIONS INVEST EXCESS CASH FOR SHORT PERIODS BUT THEY REPRESENTED A FARFLUNG GROUP OF FRAGMENTED MONEYMANAGEMENT UNITS REPORTING TO DIFFERENT PARTS OF THE BANK LACKING COHESION MORALE WAS POOR TALENTED PEOPLE WERE LEAVING THERE WAS LITTLE OR NO COMMUNICATION BETWEEN DIFFERENT MANAGERS AND MANY OF THE MANAGERS FELT MORE LIKE BANK EMPLOYEES THAN RESPECTED INVESTMENT PROFESSIONALS IN APRIL 1992 MR BOWEN WHO HAD BEEN CHIEF EXECUTIVE OFFICER AT HILL SAMUEL INVESTMENT MANAGEMENT GROUP WAS HIRED TO RESTRUCTURE CITIBANK'S ASSETMANAGEMENT BUSINESS HE HAS SINCE BUILT A SINGLE COORDINATED ENTITY GIVEN IT AN IDENTITY WITHIN THE BANK AND HIRED SEVERAL SENIOR INVESTMENT MANAGERS INCLUDING BOB MICHAELSON A HIGHLY RESPECTED SENIOR EXECUTIVE AT MERCURY ASSET MANAGEMENT GROUP PLC AS CHIEF INVESTMENT OFFICER NOTING THAT CGAM IS STRONGER IN LATIN AMERICA THAN IN EAST ASIA MRS DOUSE OF R WATSON IS STILL IMPRESSED IN EMERGING MARKETS SHE FEELS CITIBANK HAS GOOD PROFESSIONALS AND A UNIQUE PRODUCT IN AN AREA OF INVESTMENT MANAGEMENT THAT HAS RELATIVELY FEW GOOD SPECIALISTS NONETHELESS IT'S A VERY BIG ANIMAL THAT THEY ARE HAVING TO MANAGE FROM THEIR LONDON BASE SHE SAYS IT'S NOT ALL ROSES THEY HAVE ENORMOUS CHALLENGES AHEAD OF THEM MORALE RETENTION OF TALENTED STAFF ECONOMIZING ON THEIR RESEARCH RESOURCES CHANGING THE EXTERNAL IMAGE OF A BANK AS A SUCCESSFUL INVESTMENT FIRM SHE ALSO ASKS IF YOU HAVE A LARGE TEAM MANAGING FOR MULTIPLE CLIENTS WILL THE BEST IDEAS BE IN ALL THE PORTFOLIOS 9310150199 931015 PROGRAM TRADING NEW YORK PROGRAM TRADING IN THE WEEK ENDED OCT 8 ACCOUNTED FOR 11 OR AN AVERAGE 286 MILLION DAILY SHARES OF NEW YORK STOCK EXCHANGE VOLUME BROKERAGE FIRMS EXECUTED AN ADDITIONAL 41 MILLION DAILY SHARES OF PROGRAM TRADING AWAY FROM THE BIG BOARD MOSTLY ON FOREIGN MARKETS PROGRAM TRADING IS THE SIMULTANEOUS PURCHASE OR SALE OF AT LEAST 15 DIFFERENT STOCKS WITH A TOTAL VALUE OF 1 MILLION OR MORE OF THE PROGRAM TOTAL ON THE BIG BOARD 213 INVOLVED STOCKINDEX ARBITRAGE DOWN FROM 23 THE PRIOR WEEK IN THIS STRATEGY TRADERS DART BETWEEN STOCKS AND STOCKINDEX OPTIONS AND FUTURES TO CAPTURE FLEETING PRICE DIFFERENCES SOME 446 OF PROGRAM TRADING WAS EXECUTED BY FIRMS' FOR THEIR CUSTOMERS WHILE 396 WAS FOR THEIR OWN ACCOUNTS OR PRINCIPAL TRADING AN ADDITIONAL 158 WAS DESIGNATED AS CUSTOMER FACILITATION WHERE FIRMS USE PRINCIPAL POSITIONS TO FACILITATE CUSTOMER TRADES OF THE FIVE MOSTACTIVE FIRMS NOMURA SECURITIES SUSQUEHANNA AND COOPER NEFF EXECUTED ALL OR MOST OF THEIR PROGRAM TRADING FOR THEIR OWN ACCOUNTS WHILE MORGAN STANLEY AND MERRILL LYNCH DID ALL OR MOST OF THEIR PROGRAM TRADING FOR THEIR CUSTOMERS 9310150198 931015 PANETTA SAYS SAVINGS FROM GORE PLAN MOSTLY WON'T GO TOWARD DEFICIT CUTS BY DAVID WESSEL STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON WHITE HOUSE BUDGET DIRECTOR LEON PANETTA MADE CLEAR THAT MOST OF THE MONEY SAVED BY IMPLEMENTING VICE PRESIDENT AL GORE'S MANAGEMENT REFORMS WILL BE NEEDED TO MEET EXISTING DEFICITREDUCTION GOALS RATHER THAN TO REDUCE THE DEFICIT FURTHER MR PANETTA TOLD THE HOUSE BUDGET COMMITTEE THAT MOST OF THE SAVINGS WILL GO TO FULFILL REQUIREMENTS OF THE DEFICITREDUCTION LAW PASSED EARLIER THIS YEAR ALTHOUGH HE ADDED THAT SOME MAY EVENTUALLY BE DEVOTED TO ADDITIONAL DEFICITREDUCTION MR GORE SAID IN SEPTEMBER THAT THE TWIN MISSIONS OF HIS NATIONAL PERFORMANCE REVIEW WERE TO MAKE GOVERNMENT WORK BETTER AND COST LESS AND THAT HIS RECOMMENDATIONS CAN REDUCE THE DEFICIT FURTHER THE BUDGET DIRECTOR CONFIRMED THAT THE WHITE HOUSE PLANS TO BEGIN TO IMPLEMENT THE GORE REPORT BY SUBMITTING LEGISLATION LATER THIS MONTH THAT WOULD REDUCE PROJECTED SPENDING ABOUT 12 BILLION OVER THE NEXT FIVE YEARS BUT SOME OF THESE SAVINGS SUCH AS THOSE IN EDUCATION ARE TO PAY FOR INCREASES IN HIGHERPRIORITY PROGRAMS AND MUCH OF THE REST WILL BE NEEDED TO COMPLY WITH SPENDING CAPS SET IN THE DEFICITREDUCTION LAW MR GORE SAID THAT IMPLEMENTING ALL OF HIS RECOMMENDATIONS WOULD SAVE AT LEAST 108 BILLION OVER FIVE YEARS BUT ROUGHLY HALF OF THAT REPRESENTS SAVINGS THAT HAVE ALREADY BEEN COUNTED ELSEWHERE MR PANETTA INDICATED MR PANETTA SAID 26 BILLION OF THE TOTAL REFLECTS MR CLINTON'S PREVIOUS PROMISE EMBODIED IN THE CURRENT FISCAL YEAR'S BUDGET TO REDUCE GOVERNMENT PAYROLLS BY 100000 WORKERS AN ADDITIONAL 16 BILLION REFLECTS CHANGES IN PENTAGON PROCUREMENT PRACTICES THAT THE DEFENSE DEPARTMENT ALREADY IS COUNTING ON TO BRING ITS BUDGET DOWN TO PROJECTED LEVELS THE BUDGET DIRECTOR SAID THE PACKAGE THE WHITE HOUSE PLANS TO SUBMIT AT THE END OF THIS MONTH WOULD INCLUDE PROPOSALS TO STREAMLINE GOVERNMENT PROCUREMENT PRACTICES REDUCE THE FEDERAL WORK FORCE BY OFFERING EARLY RETIREMENT INCENTIVES STRENGTHEN GOVERNMENT DEBTCOLLECTION EFFORTS ELIMINATE INCENTIVES FOR BUREAUCRATS TO SPEND MONEY AT THE END OF THE FISCAL YEAR REDUCE THE NUMBER OF FIELD OFFICES IN THE AGRICULTURE DEPARTMENT AND THE DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT AND RESCIND A FEW BILLION DOLLARS OF APPROPRIATIONS APPROVED BY CONGRESS FOR THE CURRENT FISCAL YEAR 9310150197 931015 INTERNATIONAL FERRUZZI RESCUE CLEARED BY BOARDS REJECTED BY BANKS BY MAUREEN KLINE AND LISA BANNON STAFF REPORTERS OF THE WALL STREET JOURNAL MILAN A GROUP OF FOREIGN CREDITOR BANKS REJECTED A 25 TRILLION LIRA 1581 BILLION RESCUE PACKAGE FOR THE CRISISRIDDEN FERRUZZI EMPIRE BUT THE ITALIAN AGROCHEMICAL CONGLOMERATE NEVERTHELESS APPROVED THE PLAN AT BOARD MEETINGS THE BOARDS OF FERRUZZI FINANZIARIA SPA AND ITS MAIN INDUSTRIAL HOLDING MONTEDISON SPA ALSO SAID THEY PLAN TO RAISE AS MUCH AS 12 TRILLION LIRE OVER THE NEXT TWO YEARS IN FRESH CAPITAL PARTLY THROUGH DEBTFOREQUITY SWAPS WITH CREDITORS INSTEAD OF THE 73 TRILLION LIRE PREVIOUSLY ANNOUNCED AT THE SAME TIME FERRUZZI POSTED A CONSOLIDATED LOSS OF 783 BILLION LIRE FOR THE FIRST HALF COMPARED WITH A PROFIT OF 20 BILLION LIRE A YEAR EARLIER MONTEDISON REPORTED A LOSS OF 741 BILLION LIRE FOR THE HALF COMPARED WITH A LOSS OF 188 BILLION LIRE A YEAR EARLIER THE LOSSES MAINLY REFLECTED HEAVY DEBTSERVICING COSTS A SPOKESMAN FOR SEVERAL FOREIGN BANKS SAID THEY SENT A LETTER TO FERRUZZI STATING THAT THE PROPOSED PLAN IS UNACCEPTABLE THE BANKS SAID THEY WOULD FORM A COMMITTEE COMPRISING FIVE BANKS TO FACILITATE THE PROCESS OF RESTRUCTURING THE FIVE BANKS INCLUDE CITICORP'S CITIBANK CS HOLDING'S CREDIT SUISSE FIRST BOSTON BARCLAYS PLC DEUTSCHE BANK AG AND UNION BANK OF SWITZERLAND FOREIGN BANKS ARE OWED SOME 65 TRILLION LIRE OUT OF 28 TRILLION LIRE IN TOTAL DEBT AT FERRUZZI BUT IT ISN'T CLEAR WHAT PERCENTAGE OF THE DEBT THE FOREIGNBANK COMMITTEE REPRESENTS PEOPLE CLOSE TO ONE LENDER SAID THE FOREIGNBANK GROUP OBJECTED TO THE WAY THE PLAN FAVORS SHAREHOLDERS OVER CREDITORS THE PACKAGE INCLUDES CAPITAL INCREASES ASSET SALES A PARTIAL WAIVER OF 1993 INTEREST PAYMENTS AND DEBT CONSOLIDATION ANALYSTS SAID THAT WITH THE PLAN APPROVED BY THE FERRUZZI AND MONTEDISON BOARDS AS WELL AS THE 21 LARGEST ITALIAN CREDITORS THE CONGLOMERATE HAS SOME TIME TO MANUEVER INDEED FERRUZZI REITERATED IT WOULD PROCEED WITH THE PLAN BECAUSE IT HAS THE ITALIAN BANKS' APPROVALS FERRUZZI AND MONTEDISON ANNOUNCED FIRSTHALF OPERATING RESULTS LATE LAST MONTH BUT DELAYED ANNOUNCING NET RESULTS UNTIL MOST BANKS HAD GIVEN THEIR APPROVAL TO THE DEBT PLAN FERRUZZI PREVIOUSLY REPORTED THAT CONSOLIDATED REVENUE ROSE 19 TO 11489 TRILLION LIRE WHILE MONTEDISON'S ROSE 26 TO 10287 TRILLION LIRE 9310150196 931015 INTERNATIONAL BRITISH JOBLESS RATE DROPS LONDON UNEMPLOYMENT IN BRITAIN EASED TO A SEASONALLY ADJUSTED 103 OF THE WORK FORCE IN SEPTEMBER FROM 104 IN AUGUST THE JOBLESS TOTAL IN SEPTEMBER WAS AN ADJUSTED 2908300 COMPARED WITH 2921900 IN AUGUST 9310150195 931015 WHO'S NEWS RIVERWOOD INTERNATIONAL CORP RIVERWOOD INTERNATIONAL CORP ATLANTA GEORGE F VARGA 57 YEARS OLD WAS NAMED TO THE NEWLY CREATED POSITION OF EXECUTIVE VICE PRESIDENT AND CHIEF FINANCIAL OFFICER OF THIS PAPER BOARD AND PACKAGING PRODUCTS COMPANY WHICH IS 815OWNED BY MANVILLE CORP OF DENVER MR VARGA WAS CHAIRMAN OF GENERAL ELECTRIC CO'S TUNGSRAM CO A LIGHTING BUSINESS DIVISION IN BUDST 9310150194 931015 ENTERPRISE SURVEY FINDS SMALL FIRMS SHOW RESTRAINT ON CEO PAY COMPENSATION ROSE AT A HIGHER RATE AT FORTUNE 500 COMPANIES LAST YEAR BY BRENT BOWERS AND UDAYAN GUPTA STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK AS FORTUNE 500 COMPANIES WERE GRANTING THEIR CHIEF EXECUTIVE OFFICERS BIG PAY INCREASES IN THE WEAK 1992 ECONOMY SMALLER COMPANIES WERE MUCH MORE PARSIMONIOUS A NEW SURVEY REVEALS SOME THINK THE STUDY SHEDS NEW LIGHT ON CORPORATE ACCOUNTABILITY AMONG COMPANIES STUDIED BY NEW YORK CONSULTING FIRM WILLIAM M MERCER INC SMALL AND MIDSIZE CONCERNS BOOSTED CHIEF EXECUTIVES' SALARYANDBONUS PACKAGES 6 LAST YEAR WHILE BIG COMPANIES RAISED THEM 81 MOREOVER THE SMALLER COMPANIES SURVEYED WERE CURBING PAY INCREASES EVEN THOUGH THEIR MEDIAN PROFITS SHOT UP 21 IN CONTRAST THE BIG COMPANIES WERE GRANTING HEFTY RAISES WHILE THEIR MEDIAN NET INCOME DECLINED 64 THE 100 SMALL AND MIDSIZE CONCERNS IN THE STUDY WERE PUBLICLY TRADED COMPANIES WITH ANNUAL REVENUE OF LESS THAN 300 MILLION THE 350 BIG COMPANIES WERE FORTUNE 500 CORPORATIONS OF COURSE PAY VARIES ENORMOUSLY FROM ONE COMPANY TO ANOTHER MANY SMALLCOMPANY HEADS ESPECIALLY COMPANY FOUNDERS FLAUNT THEIR NEARAUTOCRATIC POWERS AND PAY THEMSELVES SALARIES AND PERKS WAY OUT OF PROPORTION TO EARNINGS IN SOME OTHER CASES MODEST PAY RAISES MEAN ONLY THAT THE SMALLCOMPANY CHIEF OWNS A BUNDLE OF COMPANY STOCK AND DOESN'T CARE ABOUT SALARY CEOS OFTEN OWN BIG STAKES EVEN IN PUBLICLY TRADED SMALLER CONCERNS BUT COMPENSATION SPECIALISTS AND STOCKHOLDERRIGHTS ACTIVISTS HAILED THE REPORT AS AN IMPORTANT NEW ELEMENT IN THE NATIONAL DEBATE OVER EXECUTIVE COMPENSATION IT DEMONSTRATES THAT AT SMALLER COMPANIES THE TOP EXECUTIVES ARE MORE ACCOUNTABLE TO THE SHAREHOLDERS SAYS RALPH WHITWORTH PRESIDENT OF THE UNITED SHAREHOLDERS ASSOCIATION IN WASHINGTON AT THE LARGER MORE MATURE COMPANIES WITH DIFFUSE OWNERSHIP CEOS ARE FREE BY AND LARGE TO SET THEIR OWN PAY AMONG THE SURVEY'S SPECIFIC FINDINGS THE MEDIAN CASH COMPENSATION SALARY AND BONUSES OF THE SMALLCOMPANY CHIEF EXECUTIVES WAS 310000 COMPARED WITH 1095000 FOR TOP EXECUTIVES AT THE BIG CORPORATIONS THIRTYTHREE PERCENT OF THE SMALL COMPANIES GRANTED NO BONUSES TO THEIR CHIEF EXECUTIVES IN 1992 WHILE ONLY 19 OF BIG CORPORATIONS WITHHELD BONUSES TWENTYTHREE PERCENT OF SMALLCOMPANY CHIEF EXECUTIVES GOT NO SALARY INCREASE WHILE JUST 17 OF THE CHIEFS AT BIG COMPANIES WENT WITHOUT RAISES THE MEDIAN STOCKOPTION GAIN FOR CHIEF EXECUTIVES WAS 84000 AT SMALL COMPANIES AND 654000 AT LARGE COMPANIES THE MERCER FINDINGS POINT TO THE HYPOTHESIS THAT SMALLERCOMPANY CEOS ARE SHOWING MORE RESTRAINT SAYS KEVIN MURPHY A HARVARD BUSINESS SCHOOL PROFESSOR WHO SPECIALIZES IN EXECUTIVE COMPENSATION EVIDENCE THAT CORPORATE GOVERNANCE IS BETTER AT SMALL BUSINESSES IS MOSTLY ANECDOTAL THIS SEEMS TO BACK IT UP VENTURE CAPITALISTS SAY SMALLER COMPANIES HAVE ALWAYS BEEN MORE DISCIPLINED ABOUT HOLDING DOWN SALARIES IN PART BECAUSE THEY NEED THE CASH FOR OPERATIONS AND IN PART BECAUSE SHAREHOLDERS KEEP A CLOSE TAB ON FINANCES JOHN BAYLESS MANAGING PARTNER OF SEVIN ROSEN FUNDS DALLAS SAYS MANY FORTUNE 500 CORPORATIONS SIMPLY PAY WHATEVER IT COSTS TO KEEP TOP EXECUTIVES THAT HELPS EXPLAIN WHY THE COMPENSATION GAP BETWEEN LARGE AND SMALL COMPANIES HAS WIDENEDIN RECENT YEARS HE SAYS AND RICHARD KROON MANAGING PARTNER OF SPROUT GROUP A VENTURECAPITAL FIRM IN NEW YORK SAYS BIGCOMPANY BOARDS ARE MORE EASILY SWAYED THAN SMALL COMPANIES BY SURVEYS THAT SET INDUSTRY STANDARDS FOR EXECUTIVE PAY SMALLER COMPANIES HAVE DIRECTORS WHO OFTEN ARE OWNERS THESE PEOPLE ARE MUCH MORE CAREFUL ABOUT HOW COMPENSATION PLANS ARE STRUCTURED HE SAYS MOREOVER A LARGE INCREASE AT A SMALL COMPANY CAN BE VERY VISIBLE AND CAN BE A SIZABLE CHUNK OF PROFITS BUT MODEST PAY RAISES DON'T MEAN THAT SMALLCOMPANY CHIEFS ARE WEARING HAIR SHIRTS WITH BIG STAKES IN THEIR COMPANIES MANY SMALLBUSINESS CEOS DON'T NEED HIGH SALARIES NOTES HARVARD'S PROF MURPHY INDEED SUCH EXECUTIVES ARE PROBABLY PLAYING FOR THE BIG CAPITAL BUILDUP ADDS DAVID SWINFORD A MERCER PRINCIPAL AND EXECUTIVECOMPENSATION AUTHORITY PETER AMICO FOUNDER AND PRESIDENT OF PRIME CARE MEDICAL SUPPLIES INC PREDICTS HE WILL REAP A BIGGER PAYOFF IN THE LONG RUN BY PLOWING PROFITS INTO THE COMPANY RATHER THAN INTO HIS POCKETS MR AMICO WHO OWNS 95 OF THE STOCK IN THE FLUSHING NY PROVIDER OF MEDICAL EQUIPMENT AND SUPPLIES SAYS HE HASN'T GIVEN HIMSELF A PAY INCREASE IN THE PAST THREE YEARS EVEN THOUGH SALES HAVE RISEN 55 IN THE PERIOD THERE'S TOO MUCH UNCERTAINTY OUT THERE AND WE NEED THE CASH IN THE COMPANY HE SAYS SOME SMALLCOMPANY EXECUTIVES WITH BIG STAKES IN THEIR COMPANIES EVEN CUT THEIR PAY ANTHONY WILSON A FOUNDING INVESTOR AND 20 OWNER OF MICROTEL FRANCHISE & DEVELOPMENT CORP ROCHESTER NY BECAME CHIEF EXECUTIVE OF THE COMPANY IN DECEMBER BUT SLASHED THE JOB'S SALARY TO 120000 FROM 200000 THOUGH THE BUDGETMOTEL CHAIN'S REVENUE HAS SOARED THE COMPANY DOESN'T EXPECT TO BECOME PROFITABLE UNTIL 1995 MR WILSON SAYS I REDUCED MY SALARY IN ORDER FOR US TO IMPROVE OUR FINANCIAL RESULTS HE SAYS A SMALL COMPANY HAS TO OPERATE WITHIN ITS MEANS VINOD GUPTA FOUNDER AND CHAIRMAN OF AMERICAN BUSINESS INFORMATION INC OMAHA NEB RECENTLY CUT HIS SALARY IN HALF TO 120000 A YEAR HE SAYS HE GIVES HIMSELF NO BONUS BUT HE OWNS A 51 STAKE IN THE COMPANY VALUED AT CLOSE TO 90 MILLION MR GUPTA MADE THE MOVE EVEN THOUGH HE EXPECTS REVENUE AND EARNINGS TO CLIMB SHARPLY THIS YEAR AFTER STRONG GAINS LAST YEAR HE SAYS HE JUST HIRED A NEW PRESIDENT AND WANTS TO SLOW THE INCREASE IN TOTAL SALARY COSTS SO THAT WE DON'T CUT SHAREHOLDER VALUE OR HURT PROFITS FOR MANY SMALLCOMPANY EXECUTIVES THE REAL PAYOFF IS THE STOCK PRICE MR GUPTA SAYS IN CONTRAST HE ADDS THE CEOS OF BIG CORPORATIONS ARE LIKE MANAGERS OF A HOUSE THAT THEY DON'T OWN IN A CHART ON EXECUTIVE COMPENSATION FOR FRIDAY'S ENTERPRISE COLUMN THE SOURCE OF THE INFORMATION WAS WILLIAM M MERCER INC RATHER THAN NATIONAL PERFORMANCE REVIEW AS THE CHART INCORRECTLY STATED 9310150193 931015 CREDIT MARKETS BOND PRICES SURGE ON NEWS OF LOW INFLATION BUT SOME INVESTORS THINK CYCLE IS NEAR END BY THOMAS T VOGEL JR AND LESLIE SCISM STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK BOND PRICES SURGED YESTERDAY IN RESPONSE TO NEWS OF LOW INFLATION AND WEAK RETAIL SALES FOR SEPTEMBER ALTHOUGH SOME INVESTORS THINK LONGTERM INTEREST RATES MAY BE NEARING BOTTOM THE PRICE OF THE BENCHMARK 30YEAR TREASURY BOND ROSE MORE THAN 3/4 POINT OR MORE THAN 750 FOR A BOND WITH 1000 FACE VALUE TO 105 17/32 THE YIELD WHICH MOVES IN THE OPPOSITE DIRECTION OF THE PRICE DROPPED TO 585 THE LOWEST SINCE THE TREASURY BEGAN REGULAR AUCTIONS OF THE 30YEAR BOND IN 1977 THE PRICE OF THE 10YEAR NOTE ROSE NEARLY 1/2 POINT TO 104 TO YIELD 521 THE LOWEST SINCE THE FALL OF 1967 THE ECONOMIC DATA SHOW THAT INFLATION IS WELLCONTAINED SAID JAMES S FRALICK SENIOR ECONOMIST AT MORGAN STANLEY & CO THERE WAS SOME GOOD BUYING HE SAID MONEY MANAGERS WERE SITTING ON THE SIDELINES WAITING FOR THESE NUMBERS NOW MORE MONEY IS COMING IN BOND INVESTORS FEAR INFLATION BECAUSE IT REDUCES THE VALUE OF INVESTMENTS WITH A FIXED RATE OF RETURN THE GOVERNMENT REPORTED THAT THE SEPTEMBER PRODUCER PRICE INDEX ROSE 02 IN SEPTEMBER IN LINE WITH WALL STREET EXPECTATIONS IT WAS THE FIRST INCREASE SINCE APRIL BUT BOND TRADERS TOOK IT AS GOOD NEWS BECAUSE IT SHOWED THAT INFLATIONARY PRESSURES STILL ARE SUBDUED RETAIL SALES ROSE IN SEPTEMBER BY 01 ACCORDING TO THE GOVERNMENT COMPARED WITH GAINS OF 05 IN BOTH JULY AND AUGUST BUT SOME MONEY MANAGERS ALREADY ARE LOOKING FOR THE EXITS CURT HOLLINGSWORTH GOVERNMENTBONDFUND MANAGER AT FIDELITY INVESTMENTS SAID HE HAS BEEN SLOWLY SELLING SOME OF HIS HOLDINGS OF LONGTERM BONDS AFTER RIDING INTEREST RATES DOWN FOR THE LAST SEVERAL YEARS MR HOLLINGSWORTH SAID HE THINKS LONGTERM RATES STILL CAN GO AS LOW AS 55 OVER THE NEXT YEAR BUT NO LOWER IN FACT MR HOLLINGSWORTH SAID HE PLANS TO SELL MORE OF HIS LONGTERM BONDS THE CLOSER YIELDS GET TO 55 THE LOWER INTEREST RATES DROP THE RISKIER BONDS BECOME HE SAID THERE'S MUCH MORE ROOM FOR BONDS TO GO BACK UP THAN DOWN IF LONGTERM INTEREST RATES WERE TO RISE ONE PERCENTAGE POINT OVER THE NEXT YEAR TO ABOUT 685 FOR EXAMPLE AN INVESTOR IN THE 625 COUPON 30YEAR TREASURY BOND WOULD LOSE ABOUT 130 OR ABOUT 12 FOR A BOND WITH 1000 FACE VALUE BUT MANY MONEY MANAGERS STILL ARE RUSHING TO BUY LONGTERM SECURITIES WHICH ARE MORE VULNERABLE TO RISING RATES THAN ARE SHORTTERM SECURITIES BECAUSE THE MONEY MANAGERS ARE PLAYING CATCHUP SAID THOMAS A SHIVELY A SENIOR VICE PRESIDENT AT STATE STREET RESEARCH & MANAGEMENT CO A UNIT OF METROPOLITAN LIFE INSURANCE CO OF NEW YORK THAT'S BECAUSE MANY OF THEM MAY HAVE MISSED THE BIG GAINS MADE WHEN LONGTERM RATES PLUNGED BELOW 6 IN EARLY SEPTEMBER THE BOND MARKET IS BEING DRIVEN BY PEOPLE WHO HAVE TO BUY RATHER THAN PEOPLE WHO WANT TO BUY HE SAID MUTUAL FUNDS FLOODED WITH CASH MUST INVEST IN ORDER TO KEEP DIVIDENDS HIGH HE EXPLAINED YESTERDAY'S PRICE GAINS MIGHT HAVE BEEN EXAGGERATED BY LOW TRADING VOLUME MANY TRADERS AND INVESTORS WERE HOLDING BACK ON PURCHASES OF TREASURYS IN ADVANCE OF TODAY'S RELEASE OF THE SEPTEMBER CONSUMER PRICE INDEX ANOTHER IMPORTANT INFLATION MEASURE THAT REPORT OFTEN MOVES MARKETS MORE THAN THE PPI DOES TRADERS AND ANALYSTS SAID BECAUSE CONSUMER ACTIVITY IS THE MAIN ENGINE DRIVING ECONOMIC CYCLES THE FACT THAT WE DO HAVE NUMBERS COMING OUT TODAY CREATED SOME KIND OF A CEILING ON ACTIVITY SAID MATTHEW ALEXY GOVERNMENT TRADING STRATEGIST FOR CS FIRST BOSTON INC IF THE INDEX SHOWS SIMILARLY LOW CONSUMER PRICE RISES FOR THE MONTH THE BOND MARKET COULD SEE EVEN LOWER YIELDS BUT IF THE INDEX SHOWS BIGGER PRICE RISES THAN EXPECTED THE BOND MARKET COULD BE IN FOR A ROUGH DAY ECONOMISTS SURVEYED BY DOW JONES CAPITAL MARKETS REPORT EXPECT AN INCREASE OF 02 IN THE SEPTEMBER CPI TODAY IF WE IN FACT GET CPI NUMBERS ROUGHLY IN LINE WITH YESTERDAY'S PPI NUMBERS WE'LL SEE A RATHER SIGNIFICANT MOVE LOWER IN YIELD I THINK WE CAN GO TO A 5 3/4 YIELD FOR THE 30YEAR TREASURY BOND MR ALEXY SAID MUCH OF YESTERDAY'S TRADING WAS SOCALLED SHORT COVERING AN INVESTOR COVERS A SHORT BY BUYING BACK A BOND THAT HAD BEEN BORROWED AND SOLD OR SHORTED IN ANTICIPATION OF A DROP IN PRICES BUT WHEN PRICES RISE THE SOCALLED SHORT POSITION BECOMES UNPROFITABLE AND THE INVESTOR MUST COVER IT AS QUICKLY AS POSSIBLE TO REDUCE LOSSES ACCORDING TO MR ALEXY SINCE BOND YIELDS DROPPED BELOW 6 ABOUT SIX WEEKS AGO THE BOND MARKET HAS BEEN TRYING TO FIGURE OUT WHETHER THE RALLY IS OVER AND APPEARS TO HAVE DECIDED THAT THE RALLY WILL CONTINUE IN A SPEECH PREPARED FOR THE LOS ANGELESE AREAS CHAMBER OF COMMERCE YESTERDAY DEPUTY TREASURY SECRETARY ROGER ALTMAN SAID LOWER INTEREST RATES ALREADY HAVE HELPED MANY SECTORS OF THE ECONOMY BUT THE GREATEST IMPACT HAS BEEN ON BUSINESS CAPITAL INVESTMENT WHICH INCREASED SHARPLY DURING THE FIRST HALF OF THIS YEAR BUSINESSES HAVE INCREASED THEIR PURCHASES OF DURABLE EQUIPMENT BY MORE THAN 15 IN THE FIRST HALF OF THIS YEAR OVER 1992 HE SAID SUSAN STERNE CHIEF ECONOMIST AT ECONOMIC ANALYSIS ASSOCIATES INC OF STOWE VT SAID INVESTORS MIGHT HAVE UNREALISTIC EXPECTATIONS OF EVEN LOWER INFLATION RATES WE SEEM TO BE GLUED TO THE STORY THAT INFLATION ALWAYS GOING TO GO DOWN SHE SAID IT HASN'T CHANGED MUCH THIS YEAR BUT I DON'T THINK IT'S SLOWING DOWN DRAMATICALLY EITHER RATHER SHE EXPLAINS IT APPEARS TO ME THAT AT BEST PRICES WILL STAY THE SAME SOME FACTORS COULD BOOST INFLATION SHE SAID INCLUDING THE FEDERAL GASOLINE TAX THAT WENT INTO EFFECT THIS MONTH AND WILL SHOW UP IN THE INFLATION REPORTS TO BE RELEASED IN NOVEMBER THERE IS ALSO THE POSSIBILITY THAT PRESIDENT CLINTON'S PROPOSED HEALTH PACKAGE COULD PUSH PRICES UP IN THE NEXT YEAR OTHER ECONOMISTS SAID LATE YESTERDAY THE FED REPORTED THAT ITS WIDELY WATCHED M2 A MEASURE OF MONEY SUPPLY ROSE 42 BILLION FOR THE WEEK ENDED OCT 4 THAT PUTS M2 GROWTH RATE AT 14 COMPARED WITH LAST YEAR'S FOURTHQUARTER BASE JUST WITHIN THE FED'S TARGET RANGE OF 1 TO 5 M2 INCLUDES CURRENCY CHECKING ACCOUNTS MONEYMARKET FUNDS AND CERTIFICATES OF DEPOSIT SMALLER THAN 100000 ALSO YESTERDAY THE TREASURY SOLD 1587 BILLION OF ONEYEAR BILLS AT ITS MONTHLY AUCTION THE BILLS WERE SOLD AT AN AVERAGE DISCOUNT RATE OF 325 FOR A COUPONEQUIVALENT YIELD OF 338 RATES ARE DETERMINED BY THE DIFFERENCE BETWEEN THE PURCHASE PRICE AND FACE VALUE THUS HIGHER BIDDING NARROWS THE INVESTOR'S RETURN WHILE LOWER BIDDING WIDENS IT THE PERCENTAGE RATES ARE CALCULATED ON A 360DAY YEAR WHILE THE COUPON EQUIVALENT YIELD IS BASED ON A 365DAY YEAR THE PRICES OF BONDS IN THE CABLE INDUSTRY CLIMBED AGAIN BY ABOUT A POINT IN MOST CASES TRADERS SAID IN REACTION TO NEWS THAT BELL ATLANTIC CORP INTENDS TO ACQUIRE TELECOMMUNICATIONS INC THAT'S BECAUSE MOST CABLE COMPANIES ARE POTENTIAL ACQUISITION TARGETS WITH BETTERRATED BABY BELLS BEING THE LIKELY BUYERS CABLEVISION INDUSTRIES CORP'S 9 1/4 COUPON NOTE MATURING IN 2008 ROSE THREE POINTS TO 101 TO YIELD 912 ONE TRADER SAID MEANWHILE TCI BONDS HELD ON TO MOST OF WEDNESDAY'S GAINS TRADING ONLY SLIGHTLY LOWER A TRADER SAID PRICES OF INVESTMENTGRADE BONDS ENDED LITTLE CHANGED IN THE JUNKBOND MARKET PRICES ROSE BY ABOUT 1/4 POINT MARKET APPETITE FOR A 175 MILLION OF ARKANSAS POWER & LIGHT CO'S 30YEAR FIRST MORTGAGE BONDS WAS NOT AS STRONG BECAUSE INVESTORS DIDN'T LIKE THE FIVEYEARCALL STRUCTURE SYNDICATE OFFICIALS SAID MOST 30YEAR OFFERINGS HAVE 10 YEARS OF CALL PROTECTION THE DEAL SOLD THROUGH A COMPETITIVE BID WON BY GOLDMAN SACHS & CO WAS PRICED AT 98637 TO YIELD 711 108 PERCENTAGE POINTS ABOVE TREASURYS INSTITUTIONAL INVESTORS SUCH AS INSURANCE COMPANIES TYPICALLY PREFER A 10YEAR CALL BECAUSE IT MATCHES THEIR LONGER LIABILITIES AN INVESTOR SAID THE FACT THAT THE MARKET WANTS ADDITIONAL CALL PROTECTION MAY ALSO INDICATE THAT INVESTORS EXPECT INTEREST RATES WILL DROP FURTHER AND THE BONDS WILL GET CALLED AWAY SAID GEOFFREY KURINSKY SENIOR VICE PRESIDENTINVESTMENTS AT MFS ASSET MANAGEMENT GROUP I THINK IT'S AN INDICATION OF HOW BULLISH THE MARKET IS SAID MR KURINSKY WHO DIDN'T INVEST IN THE DEAL BECAUSE HE DIDN'T THINK IT OFFERED ENOUGH YIELD IF THE UTILITY WHICH IS A UNIT OF ENTERGY CORP HAD ISSUED 30YEAR DEBT WITH A 10YEAR CALL THE YIELD WOULD HAVE BEEN ABOUT 005 PERCENTAGE POINT LOWER ADDED MR KURINSKY THE BONDS ARE RATED BAA2 BY MOODY'S INVESTORS SERVICE INC AND TRIPLEB BY STANDARD & POOR'S CORP SMITH BARNEY SHEARSON HOLDINGS INC A UNIT OF PRIMERICA CORP HAS FILED FOR A SHELF OFFERING OF UP TO 750 MILLION OF DEBT SECURITIES IN A FILING WITH THE SECURITIES AND EXCHANGE COMMISSION THE COMPANY SAID IT WILL USE THE PROCEEDS FROM THE OFFERING FOR GENERAL CORPORATE PURPOSES NO UNDERWRITERS WERE LISTED IN THE FILING MEANWHILE REPUBLIC NEW YORK CORP AND JP MORGAN & CO BOTH PRICED 15YEAR OFFERINGS WHILE ASSOCIATES CORP OF NORTH AMERICA ISSUED 10YEAR PAPER HOUSEHOLD INTERNATIONAL NETHERLANDS BV A UNIT OF HOUSEHOLD INTERNATIONAL INC SOLD FIVEYEAR NOTES MUNICIPAL BONDS FINISHED YESTERDAY'S CALM TRADING WITH GAINS OF 1/4 TO 3/8 POINT HELPED BY NEWS OF THE SEPTEMBER PRODUCER PRICE INDEX AMONG ACTIVELY TRADED ISSUES THE NEW YORK STATE POWER AUTHORITY'S 525 OF 2018 GENERAL PURPOSE REFUNDING BONDS CLOSED 3/8 HIGHER AT 100 1/8 TO 100 3/8 YIELDING 522 IN THE PRIMARY MARKET NEW YORK CITY'S 650 MILLION FISCAL 1994 SERIES A TAXANTICIPATION NOTES WERE WON BY CS FIRST BOSTON INC AND GOLDMAN SACHS & CO CS FIRST BOSTON WON 400 MILLION OF THE NOTES WITH A BID SETTING THE NET INTEREST COST AT 2515 AND GOLDMAN SACHS WON 250 MILLION OF THE NOTES WITH A NETINTERESTCOST BID OF 2374 CS FIRST BOSTON PRICED THE 3125 COUPON NOTES TO YIELD 245 ON APRIL 1 1994 GOLDMAN SACHS' NOTES AREN'T FORMALLY REOFFERED TO INVESTORS THE ISSUE IS RATED MIG1 BY MOODY'S INVESTORS SERVICE INC AND SP1PLUS BY STANDARD & POOR'S CORP MORTGAGE SECURITIES BACKED BY CURRENT LOAN PRODUCTION RECOVERED AFTER LAGGING BEHIND GAINS IN THE TREASURY MARKET MOST OF YESTERDAY MORNING SOME TRADERS SUSPECT THE IMPROVEMENT WAS DRIVEN BY DEALERS WHO BOUGHT THE CHEAPENING COLLATERAL TO REPACKAGE INTO REALESTATE MORTGAGE INVESTMENT CONDUITS MEANWHILE THE ASSETBACKED MARKET IS AWAITING A 25 BILLION OFFERING OF GENERAL MOTORS CORP'S GENERAL MOTORS ACCEPTANCE CORP AUTO LOAN SECURITIES THE ISSUE INCLUDES A 12 MILLION CLASS THAT WILL BE SOLD PRIVATELY INTO AN ASSETBACKED COMMERCIAL PAPER CONDUIT IN SECONDARY TRADING CURRENT COUPON GAINS CAUGHT UP TO THE 15/32 GAIN IN THE PRICE OF THE 10YEAR TREASURY NOTE GOVERNMENT NATIONAL MORTGAGE ASSOCIATION 6 ISSUES FOR NOVEMBER DELIVERY WERE UP 13/32 AT 99 14/32 FEDERAL HOME LOAN MORTGAGE CORP GOLD 6 ISSUES WERE UP 15/32 AT 99 10/32 AND FEDERAL NATIONAL MORTGAGE ASSOCIATION 6 ISSUES WERE UP 15/32 AT 99 4/32 JACQUELINE DOHERTY CONTRIBUTED TO THIS REPORT 9310150192 931015 WHO'S NEWS BARNETT BANKS INC BARNETT BANKS INC JACKSONVILLE FLA HELEN ROWAN WAS APPOINTED TO THE NEW POSITION OF DIRECTOR OF CORPORATE DEVELOPMENT WHERE SHE WILL FOCUS ON NEW OPPORTUNITIES FOR FEE INCOME AT THE 37 BILLIONASSET BANK MS ROWAN 32 YEARS OLD PREVIOUSLY DIRECTED BARNETT'S INVESTOR RELATIONS AND FINANCIAL ANALYSIS DEPARTMENTS 9310150191 931015 WHATEVER THEY CALL THEIR FARE IT SEEMS TO BE FOOD FOR THOUGHT BY EBEN SHAPIRO STAFF REPORTER OF THE WALL STREET JOURNAL THE FOLKS WHO MAKE SCHOOL LUNCHES CAN DISH IT OUT BUT THEY FIND JOKES AT THEIR EXPENSE HARD TO SWALLOW THE 65000MEMBER AMERICAN SCHOOL FOOD SERVICE ASSOCIATION A TRADE GROUP IS QUICK TO POUNCE ON SLURS AGAINST MYSTERY MEAT OR ANY OTHER ASPECT OF THE 25 MILLION MEALS SERVED EACH DAY BY ITS HAIRNETTED MEMBERS AFTER ALL CHEFS THE WORLD OVER ARE NOTORIOUSLY THINSKINNED THE GROUP IS CHOKING ON A TSHIRT DESIGNED BY A NEW YORK HIGHSCHOOL STUDENT THAT BEARS THE LEGEND SCHOOL FOOD IT'S FATAL EAT IT BEFORE IT EATS YOU THE SHIRT HAS A PIE CHART DEPICTING THE FATE OF EATERS OF INSTITUTIONAL GRUEL FOOD ATE THEM 10 THEY ATE FOOD 5 THE SHIRT IS SOLD IN DEPARTMENT STORES AS PART OF A COLLECTION CREATED BY DESIGNS FOR EDUCATION A SAN FRANCISCO COMPANY THAT MARKETS STUDENTDESIGNED SHIRTS ANGRY MEMBERS THROWING DOWN THEIR PLASTIC GLOVES FOR BATTLE HAVE ALREADY PERSUADED SEVERAL RETAILERS TO DROP THE SHIRT ACCORDING TO BROCK GREENE COFOUNDER OF DESIGNS FOR EDUCATION ATLANTABASED RICH'S FOR ONE CONFIRMS THAT IT HAS PULLED THE ITEM AFTER RECEIVING SEVERAL CUSTOMER COMPLAINTS THE PROTESTS REACHED A CRESCENDO DURING NATIONAL SCHOOL LUNCH WEEK WHICH ENDS TOMORROW DESIGNS FOR EDUCATION'S OFFICES HAVE BEEN PEPPERED WITH LETTERS AND PHONE CALLS DEMANDING THAT THE OFFENDING SHIRT BE DROPED IMMEDIATELY THERE IS ABSOLUTELY NO SCIENTIFIC PROOF TO YOUR STATEMENT ABOUT SCHOOL FOOD CAUSING DEATH FOR A STUDENT WROTE AN OUTRAGED SCHOOLLUNCH ADMINISTRATOR AT DENVER'S PUBLIC SCHOOLS IT WAS A FAIRLY STINGING ATTACK FROM AN ORGANIZATION WHOSE MEMBERS HAVE BEEN KNOWN TO SERVE FRENCH FRIES AS THE VEGETABLE OF THE DAY BUT THE GROUP HAS PREVAILED IN PREVIOUS FOOD FIGHTS ON TWO SEPARATE OCCASIONS AN OUTRAGED RESPONSE FROM THE ASSOCIATION HAS FORCED THE ROY ROGERS CHAIN TO DROP A MOCKING TV AD THAT PORTRAYS INSTITUTIONAL FOOD IN AN UNAPPETIZING LIGHT DESIGNS FOR EDUCATION HOWEVER HAS DRAWN A LINE IN THE TUNA AND REFUSES TO DROP THE SHIRT ONE OF ITS BESTSELLERS THE SHIRT'S DESIGNER 15YEAROLD STEPHEN VARGA OF STATEN ISLAND SAYS THE LUNCH WORKERS AT HIS SCHOOL HAVE NOT TAKEN OFFENSE HIS ADVICE TO THE ASSOCIATION'S NATIONAL LEADERSHIP SPEND LESS TIME COMPLAINING ABOUT HIS SHIRT AND MORE TIME MAKING THE FOOD APPEALING 9310150190 931015 THURSDAY'S MARKETS INFLATION DATA SPARK BONDS DOW RISES 1844 BY STEVEN E LEVINGSTON STAFF REPORTER OF THE WALL STREET JOURNAL GOOD INFLATION NEWS SPARKED A ROBUST BOND MARKET RALLY THAT PUSHED UP STOCK PRICES THE DOLLAR ROSE THE DOW JONES INDUSTRIAL AVERAGE CLIMBED 1844 POINTS TO 362163 IN THE SECONDHEAVIEST TRADING ON THE NEW YORK STOCK EXCHANGE THIS YEAR STANDARD & POOR'S 500STOCK INDEX ROSE 534 TO A RECORD 46683 AND THE NASDAQ COMPOSITE INDEX JUMPED 644 TO 78541 IN HEAVY TRADING THE BOND MARKET RALLY ERUPTED AFTER THE LABOR DEPARTMENT REPORTED PRODUCER PRICES ROSE AN EXPECTED 02 IN SEPTEMBER DONALD MAUDE CHIEF US FIXEDINCOME STRATEGIST AT SCOTIA MCLEOD USA SAID THE BOND RALLY RESULTED NOT ONLY FROM ENTHUSIASM ABOUT THE PRODUCER PRICE DATA BUT FROM EXPECTATIONS THAT TODAY'S CONSUMER PRICE REPORT WILL BE POSITIVE LATER IN THE MORNING THE COMMERCE DEPARTMENT REPORTED RETAIL SALES INCHED 01 HIGHER IN SEPTEMBER MR MAUDE NOTED A CONTINUING PATTERN OF HEALTHY UPWARD REVISIONS TO THE PRIOR MONTH'S DATA SUGGESTING THAT RETAIL SALES MAY BE STRONGER THAN THE CURRENT REPORT INDICATES AND THAT'S POSITIVE FOR BOTH STOCKS AND BONDS HE ARGUED THE HIGH VOLUME ON BOTH THE BIG BOARD AND NASDAQ RESULTED FROM HEAVY ACTIVITY IN THE BABY BELL AND AUTO STOCKS AS WELL AS FROM TRADERS SQUARING POSITIONS AHEAD OF TODAY'S EXPIRATION OF OPTIONS WORLDWIDE STOCK PRICES FELL IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX LOST 006 TO 11307 IN MAJOR MARKET ACTION STOCK PRICES ROSE VOLUME TOTALED 3519 MILLION SHARES ON THE NEW YORK STOCK EXCHANGE WHERE 1162 ISSUES ROSE AND 913 FELL BOND PRICES RALLIED THE TREASURY'S BENCHMARK 30YEAR ISSUE GAINED MORE THAN 3/4 POINT OR OVER 750 FOR EACH 1000 FACE AMOUNT TO YIELD 585 THE DOLLAR ROSE IN LATE NEW YORK TRADING THE CURRENCY WAS QUOTED AT 16125 MARKS AND 10735 YEN COMPARED WITH 16015 MARKS AND 10595 YEN WEDNESDAY 9310150189 931015 JP MORGAN EIGHT REGIONAL BANKS POST DOUBLEDIGIT PROFIT GAINS FOR QUARTER BY STEVEN LIPIN STAFF REPORTER OF THE WALL STREET JOURNAL JP MORGAN & CO REPORTED STRONGERTHANEXPECTED THIRDQUARTER RESULTS MAINLY FROM GAINS ON TRADING BONDS AND CURRENCIES EIGHT BIG REGIONAL BANKS ALSO POSTED DOUBLEDIGIT EARNINGS GROWTH BECAUSE OF HEALTHY INTEREST MARGINS AND A CONTINUED DECLINE IN PROBLEM LOANS JP MORGAN'S EARNINGS SURGED 46 IN THE QUARTER WHILE FIRST UNION CORP'S RESULTS CLIMBED 20 NORWEST CORP REPORTED EARNINGS UP 26 AND BANK OF NEW YORK CO WAS UP 45 WACHOVIA CORP'S NET ROSE 14 WHILE FIRST FIDELITY BANCORP'S JUMPED 23 KEYCORP WAS UP 31 AND ITS NEWFOUND MERGER PARTNER SOCIETY CORP REPORTED A 19 RISE CHICAGO'S CONTINENTAL BANK CORP HAD A 28 GAIN THE EARNINGS PICTURE PORTRAYS AN INDUSTRY THAT CONTINUES TO BENEFIT FROM HISTORICALLY FAT PROFIT MARGINS BETWEEN BORROWING AND LENDING RATES ALTHOUGH THOSE MARGINS ARE NARROWING PROBLEM LOANS ARE QUICKLY BECOMING A NONISSUE AS BANKS ARE ABLE TO LOWER THE RESERVES NEEDED TO COVER BAD DEBTS HOWEVER LOAN DEMAND REMAINS SPORADIC BUT SHARES OF THESE BANKS AND MANY OTHERS ENDED LOWER YESTERDAY AS INVESTORS RUSHED TO TAKE PROFITS FROM A RECENT RISE IN BANKING COMPANY STOCKS JP MORGAN FELL 75 CENTS TO 7775 WHILE FIRST UNION DROPPED TO 44 DOWN 2125 AND NORWEST TO 2775 DOWN 875 CENTS BANK OF NEW YORK EASED 150 TO 56 AND WACHOVIA 375 CENTS TO 39 FIRST FIDELITY FELL 625 CENTS TO 45 KEYCORP FELL TO 3625 DOWN 375 CENTS AND SOCIETY TO 30125 DOWN 625 CENTS CONTINENTAL SLIPPED 25 CENTS TO 28 GOOD EARNINGS AND BOY DO PEOPLE LOVE IT QUIPPED DIANE GLOSSMAN BANKING ANALYST AT SALOMON BROTHERS ALTHOUGH MS GLOSSMAN SAID THE DROP INVOLVED PREDOMINANTLY PROFITTAKING THERE ALSO IS CONCERN THAT BANK EARNINGS COULD BE HURT NEXT YEAR UNLESS LOAN DEMAND PICKS UP RESULTS AT THE NATION'S FOURTHLARGEST BANKING COMPANY EXCEEDED FIRST CALL CORP'S CONSENSUS ESTIMATE OF 193 A SHARE REVENUE FROM TRADING SECURITIES CURRENCIES AND DERIVATIVES WAS 464 MILLION UP 50 FROM THE YEAREARLIER PERIOD BUT DOWN FROM THE SECOND QUARTER 1993 FIGURE OF 520 MILLION CORPORATE FINANCE FEES CLIMBED 14 TO 140 MILLION REFLECTING INCREASED ACTIVITY IN SECURITIES UNDERWRITING THE BANK WAS ALSO HELPED BY 98 MILLION IN SECURITIES GAINS AND 179 MILLION IN REVENUE FROM THE SALE OF EQUITY STAKES AT THE SAME TIME THE BANK'S OPERATING EXPENSES GREW 18 FRUSTRATING WALL STREET FLUSH WITH A STRONG CAPITAL BASE AND A TOPFLIGHT CREDIT RATING THE BANK IS GETTING BIGGER AS IT SEARCHES FOR NEW WAYS TO MAKE MONEY AVERAGE ASSETS CLIMBED 9 BILLION IN THE QUARTER HELPING NET INTEREST INCOME WHILE ITS LOAN PORTFOLIO DECLINED MUCH OF THE ASSET GROWTH CAME IN ITS SECURITIES BUSINESSES RATHER THAN NEW LOANS ON THE COMPANY'S BOOKS WHILE MORGAN'S BOTTOM LINE WILL BE INCREASINGLY TIED TO THE SECURITIES MARKETS BECAUSE OF ITS CHANGING PRODUCT MIX WE ARE ENCOURAGED BY THE BROAD IMPROVEMENT IN ALL OF ITS LINES OF BUSINESS SAID MS GLOSSMAN FIRST UNION JOINED OTHER BANKHOLDING COMPANIES IN REPORTING IMPROVEMENTS IN ITS LOAN PORTFOLIO NONPERFORMING ASSETS FELL TO 12 BILLION FROM 14 BILLION DURING THE YEAREARLIER QUARTER THE BANK REPORTED 5 BILLION OF NET LOAN GAINS TO 462 BILLION ATTRIBUTING THE GROWTH TO ITS ACQUISITIONS AS WELL AS INCREASED LENDING ACTIVITY IN NORTH CAROLINA AND FLORIDA BUT FIRST UNION ALSO REPORTED A SUBSTANTIAL DECLINE IN ITS NET INTEREST MARGIN WHICH ANALYSTS SAID WAS LARGELY RESPONSIBLE FOR THE DROP IN ITS STOCK IN THE THIRD QUARTER THE MARGIN FELL TO 465 FROM 492 IN THE SECOND QUARTER AND 489 IN THE YEAREARLIETER FIRST UNION ATTRIBUTED THE MARGIN EROSION PARTLY TO THE ACQUISITION OF BANKS WITH LOWER MARGINS AND THE IMPACT OF REFINANCING ACTIVITY AS WELL AS THE ADDITION OF SHORTTERM SECURITIES NORWEST'S EARNINGS CAME WITHIN THE RANGE OF ANALYSTS' EXPECTATIONS THE MINNEAPOLISBASED BANK HOLDING COMPANY SAID ITS FINANCIAL UNIT CONTINUED ITS STRONG EARNINGS GROWTH WITH A 35 INCREASE FROM THE THIRD QUARTER OF 1992 THE BANKING GROUP'S NET INCOME ROSE 35 WITH ILLINOIS IOWA MONTANA WYOMING NEBRASKA AND WISCONSIN ACHIEVING RETURNS ON ASSETS IN EXCESS OF 130 EARNINGS FOR THE COMPANY'S MORTGAGE BANKING UNIT FELL 30 BECAUSE OF THE RETENTION OF ALL SERVICING IN THE QUARTER NORWEST'S NET INTEREST MARGIN WAS 554 FOR THE QUARTER COMPARED WITH 561 IN THE YEARAGO PERIOD THE DECLINE WAS DUE TO A 067PERCENTAGE POINT DECREASE IN YIELDS ON EARNING ASSETS PARTIALLY OFFSET BY LOWER FUNDING COSTS THE COMPANY'S PROVISION FOR CREDIT LOSSES DECLINED TO 23 MILLION FROM 433 MILLION IN THE YEAREARLIER QUARTER BANK OF NEW YORK'S EARNINGS WERE HIGHER THAN RESULTS FORECAST BY WALL STREET ANALYSTS WHOSE CONSENSUS ESTIMATE WAS 137 A SHARE THE RESULT WAS ATTRIBUTABLE IN PART TO THE BANK'S RECENT PURCHASE OF NATIONAL COMMUNITY BANKS INC EARNINGS WERE AIDED BY A DROPOFF IN PROBLEM ASSETS AND WIDE NET INTEREST MARGINS THE PROFIT MARGIN BETWEEN BORROWING COSTS AND RATES EARNED ON LOANS AND INVESTMENTS THE MARGIN WAS 309 UP FROM A YEAR AGO BUT DOWN 011 PERCENTAGE POINT FROM THE SECOND QUARTER THE LOANLOSS PROVISION FELL TO 55 MILLION FROM 86 MILLION IN THE SECOND QUARTER AND 95 MILLION A YEAR AGO LOAN GROWTH REMAINED FLAT EXCEPT FOR CREDIT CARD RECEIVABLES WHICH JUMPED 22 FROM THE YEAREARLIER PERIOD TO 58 BILLION THE BANK SAID THAT IF THE CURRENT FAVORABLE EARNINGS TREND CONTINUES THE BOARD WILL CONSIDER BOOSTING ITS QUARTERLY DIVIDEND RATE NEXT YEAR FROM THE CURRENT 45 CENTS WACHOVIA FALLING RIGHT IN LINE WITH ANALYSTS' ESTIMATES SHOWED STEADY PROGRESS ON SEVERAL FRONTS IN POSTING A 14 EARNINGS GAIN LOANS GREW TO 22 BILLION A 10 RISE FROM THE 20 BILLION REPORTED IN THE THIRD QUARTER OF 1992 NET INTEREST INCOME INCREASED TO 347 MILLION UP SLIGHTLY FROM THE SECOND QUARTER WACHOVIA HELPED BOOST ITS EARNINGS BY CONTINUING TO REDUCE COSTS KNOCKING INTEREST EXPENSE DOWN 6 TO 211 MILLION COMPARED WITH THE YEAREARLIER'S 225 MILLION THE BANK REDUCED ITS NONPERFORMING ASSETS TO 188 MILLION A 33 DROPOFF FROM A YEAR EARLIER BUOYED BY HIGHER NET INTEREST INCOME AND INCREASED LOAN ACTIVITY THE BANK'S RESULTS SLIGHTLY EXCEEDED CONSENSUS ESTIMATES THE COMPANY SAID EARNINGS ALSO BENEFITED FROM A DECLINE IN THE CREDIT LOSS PROVISION AN INCREASE IN NONINTEREST INCOME AND STABLETOLOWER OPERATING EXPENSES INCLUDING THE IMPACT OF MERGERS FOR THE QUARTER THE COMPANY INCREASED ITS OUTSTANDING LOANS TO 2028 BILLION FROM 1667 BILLION INTEREST AND FEES FROM LOANS INCREASED TO 3895 MILLION FROM 367 MILLION KEYCORP'S NET INCOME WAS IN LINE WITH ANALYSTS' ESTIMATES UNLIKE MOST BANKS THE ALBANY NY CONCERN SAID IT HAD 5 LOAN GROWTH FROM THE YEAREARLIER QUARTER DUE TO A BIG JUMP IN LOANS IN THE ROCKY MOUNTAIN STATES NONPERFORMING ASSETS FELL TO 3184 MILLION FROM 3661 MILLION IN THE SECOND QUARTER AND 4121 MILLION A YEAR AGO FEE INCOME INCREASED NEARLY 9 FROM A YEAR AGO TO 1176 MILLION BUT WAS DOWN 14 FROM THE SECOND QUARTER BECAUSE OF SEVERAL NONRECURRING ITEMS THE BANK'S RETURN ON ASSETS A MEASURE OF PROFITABILITY INCREASED SLIGHTLY TO 128 FROM 127 IN THE SECOND QUARTER THINGS ARE FINE BUT NOT SPECTACULAR SAID MICHAEL MAYO AN ANALYST AT UBS SECURITIES CLEVELANDBASED SOCIETY'S EARNINGS WERE IN LINE WITH ANALYSTS' ESTIMATES OF 83 CENTS A SHARE SOCIETY WHICH ANNOUNCED ON OCT 4 A MERGEROFEQUALS WITH KEYCORP CITED THIRDQUARTER RETURN ON AVERAGE ASSETS OF 155 AND RETURN ON COMMON EQUITY OF 198 JAMES W WERT SOCIETY VICE CHAIRMAN AND CHIEF FINANCIAL OFFICER ALSO CITED DECLINES IN NONPERFORMING LOANS NONPERFORMING ASSETS AND THE BANK HOLDING COMPANY'S LOWEST NET CHARGEOFF RATIO SINCE THE THIRD QUARTER OF 1989 THE CHICAGO CORPORATE BANK SAID THE BETTER RESULTS STEMMED FROM HIGHER TRADING PROFITS AND GAINS ON THE SALE OF EQUITY INVESTMENTS THAT WAS OFFSET BY A DECLINE IN CORPORATE FINANCE AND SYNDICATION FEES OPERATING EXPENSES AT THE BANK ROSE 5 AS HIGHER TRADING RESULTS BOOSTED COMPENSATION COSTS BRIDGET O'BRIAN AND EMORY THOMAS CONTRIBUTED TO THIS ARTICLE 9310150188 931015 ENTERTAINMENT OPENING SHOT IS FIRED IN LAS VEGAS MEGARESORT WAR BY PAULINE YOSHIHASHI STAFF REPORTER OF THE WALL STREET JOURNAL EVEN FOR LAS VEGAS A PLACE OF OUTSIZED DREAMS THE LATEST WAVE OF EXPANSION IS A TEST OF FAITH THE LUXOR A 390 MILLION GLASSSKINNED PYRAMIDSHAPED MEGARESORT OPENING TODAY FEATURES A MIX OF FUTURISTIC AMUSEMENTS LASERS WATERWAYS AND OLDFASHIONED CASINO GAMES THE 475 MILLION TREASURE ISLAND CASINO WILL MARK ITS OPENING IN TWO WEEKS BY FIRING A MOCK CANNONBALL FROM A FAUX PIRATE SHIP AT THE SHUTTERED DUNES CASINO WHICH WILL BE DYNAMITED TO SMITHEREENS AND IN DECEMBER THE 1 BILLION MGM GRAND HOTELCASINO AND THEME PARK BRINGS THE CITY'S FIRST TRUE AMUSEMENT PARK AND THE WORLD'S BIGGEST HOTEL TO TOWN THE CITY'S AMBITION IS NO LONGER JUST TO REMAIN KING OF GAMBLING TOWNS BUT LAS VEGAS IS BETTING THAT IT CAN CHALLENGE TOURISM DESTINATION MARKETS LIKE ORLANDO FLA CONVENTION POWERHOUSES SUCH AS CHICAGO AND AMUSEMENTPARK MARKETS SUCH AS SOUTHERN CALIFORNIA FOR AN INCREASING SHARE OF THOSE BUSINESSES THESE DAYS THE BATTLE CRY IS ENTERTAINMENT WHICH IN LAS VEGAS CAN RANGE FROM THE ILLICIT TO THE DISNEYESQUE AT THE MGM FOR EXAMPLE ENTERTAINMENT INCLUDES THE 33ACRE THEME PARK A HUGE INDOOR STADIUM AND A SOARING REPLICA OF THE EMERALD CITY OF OZ THERE ARE ALSO THE TRIMMINGS SUCH AS AN ANIMATRONIC WITCH THAT WILL SWOOP OVER SLOT PLAYERS' HEADS THIS WILL BE THE ENTERTAINMENT CAPITAL OF THE WORLD SAYS ALEX YEMENIDJIAN MGM GRAND'S EXECUTIVE VICE PRESIDENT THE THREE PROJECTS WILL ADD 10500 ROOMS TO THE MARKET OR MORE ROOMS THAN IN THE ENTIRE STATE OF ALASKA THAT WILL BOOST LAS VEGAS TO MORE THAN 86000 ROOMS ECLIPSING ORLANDO'S 79000 ROOMS NO ONE'S FORGOTTEN THAT AFTER THE LAST LAS VEGAS BUILDING BOOM IN 1989 WHICH ADDED THE MIRAGE AND EXCALIBUR CASINOS SEVERAL WEAKER OPERATORS SUCH AS THE EL RANCHO MAIN STREET STATION AND THE DUNES BIT THE DUST BUT CASINO OPERATORS AND INDUSTRY OBSERVERS SAY THE MARKET CONTINUES TO SHOW STRENGTH EVEN THOUGH SOUTHERN CALIFORNIA'S SHAKY ECONOMY LINGERS SUCH RECESSIONRELATED TROUBLES HAVE BEEN REFLECTED IN VISITORS CUTTING BACK ON SPENDING AND PERIODIC DIPS IN AUTO TRAFFIC FROM THE LOS ANGELES AREA STILL VISITORS CONTINUE TO ARRIVE IN DROVES LOCAL OFFICIALS SAY THEY EXPECT ABOUT 224 MILLION VISITORS TO HIT TOWN BY YEAR END UP ABOUT 22 FROM THE 219 MILLION IN 1992 THE METROPOLITAN ORLANDO AREA ALSO EXPECTS ABOUT A 2 INCREASE IN VISITOR VOLUME TO AROUND 132 MILLION INDUSTRY WATCHERS SAY THOSE STATISTICS ARE A SIGN OF LAS VEGAS'S RESILIENCE CONSIDERING THAT OTHER TOURISM MARKETS SUCH AS HAWAII REMAIN DEPRESSED SMART MARKETERS KNOW HOW TO INCREASE THEIR SHARE OF A SLOWGROWING MARKET AND LAS VEGAS HAS BEEN DOING THAT SAYS JAMES CAMMISA JR A TRAVELINDUSTRY ANALYST THE VISITOR VOLUME HELPED NEVADA AND LAS VEGAS TO POST GAMBLING REVENUE GAINS FOR THE YEAR ENDED JUNE 30 NEVADA'S GAMBLING REVENUE TOPPED 6 BILLION FOR THE FIRST TIME RISING 57 TO 602 BILLION LAS VEGASAREA CASINOS ACCOUNTED FOR 423 BILLION OF THAT A 68 INCREASE MR CAMMISA NOTES THAT TOURISM MARKETS THAT CONTINUE TO DO WELL SUCH AS LAS VEGAS ORLANDO AND THE CRUISE INDUSTRY SHARE SOME COMMON TRAITS THEY ALL HAVE NEW THINGS TO SEE THEY PLAY TO THE TREND TOWARD SHORTER VACATIONS AND THEY'RE WHAT I CALL ALLINCLUSIVE' VACATIONS WITH A LOT OF ADDED VALUE FOR THE MONEY MANUEL CORTEZ PRESIDENT OF THE LAS VEGAS CONVENTION AND VISITORS AUTHORITY SAYS THAT THE FASTGROWING RIVERBOAT AND INDIAN CASINOS ARE LIKE A FARM TEAM FOR LAS VEGAS THOSE PEOPLE WILL VACATION HERE WHICH BRINGS IN A LOT OF OUTSIDE MONEY HE SAYS IN A LOCAL MARKET LIKE A RIVERBOAT MARKET YOU'RE SERVING LOCAL CUSTOMERS AND RECIRCULATING LOCAL MONEY CITY FATHERS ALSO HOPE TO OFFER OTHER WAYS TO SEPARATE TOURISTS FROM THEIR MONEY BELZ ENTERPRISES OF MEMPHIS TENN WHOSE MAMMOTH FACTORY OUTLET COMPLEX IN ORLANDO HAS BECOME A TOURIST DRAW IS ABOUT TO CUT THE RIBBON ON A SPRAWLING OUTLET COMPLEX IN LAS VEGAS IT IS EXPECTED TO GET 65 OF ITS CUSTOMER BASE FROM TOURISTS A SPOKESMAN SAYS THE COMPETITION IS CAUSING OTHER PROPERTIES TO SPEND FREELY OR RISK FALLING BEHIND THERE WILL CERTAINLY BE SOME INTENSE COMPETITION FOR MARKET SHARE HILTON HOTELS CORP PRESIDENT RAYMOND AVANSINO SAYS HILTON IS SPENDING MORE THAN 100 MILLION TO GUSSY UP ITS CASH COW THE FLAMINGO HILTON AND IS ADDING SUCH DRAWS AS ANDREW LLOYD WEBBER'S STARLIGHT EXPRESS STAGE SHOW AS A PERMANENT ATTRACTION AT THE LAS VEGAS HILTON PLANS ALREADY ARE BEING OUTLINED FOR THE NEXT GROWTH SPURT ITT CORP'S ITT SHERATON HOTEL CHAIN PLANS TO SPEND AS MUCH AS 1 BILLION OVER 10 YEARS ON THE DESERT INN AND SURROUNDING ACREAGE AND DOESN'T RULE OUT OTHER STRIP ACQUISITIONS OR VENTURES RAND ARASKOG ITT'S CHAIRMAN NOTES THAT LAS VEGAS'S REPUTATION AS A GAMBLING TOWN SOMETIMES OVERSHADOWS ITS IMPORTANCE AS A MAJOR CONVENTION AND MEETING MARKET WE HAVE HOTELS IN ALL THE MAJOR CONVENTION CITIES OF THIS COUNTRY AND THIS WILL FILL A BIG HOLE IN OUR SYSTEM HE SAYS AND MIRAGE RESORTS INC IS ALREADY PREPARING TO FINANCE A PROJECT ON THE DUNES SITE THAT COULD EASILY EXCEED 1 BILLION INDUSTRY EXECUTIVES SAY THE TRICK IS TO BUILD THE BEST MOUSETRAP RATHER THAN JUST ADDING ROOMS AND CASINO FOOTAGE WHAT REALLY DETERMINES HOW WELL LAS VEGAS DOES IS HOW WELL WE EXECUTE OUR PROJECTS AND THE VALUE OF THE ENTERTAINMENT WE OFFER CLYDE TURNER PRESIDENT OF CIRCUS CIRCUS ENTERPRISES INC SAYS OF THE COMPANY'S LUXOR PROJECT AND ITS COMPETITORS 9310150187 931015 LEISURE & ARTS ON SPORTS PIG PEN' PHILS ON PRIME TIME BY FREDERICK C KLEIN PHILADELPHIA WE WILL HAVE AN EASTERN TIME WORLD SERIES STARTING IN TORONTO TOMORROW NIGHT MATCHING THE AMERICAN LEAGUE CHAMPION BLUE JAYS AGAINST THE NATIONAL LEAGUE CHAMP PHILADELPHIA PHILLIES THIS MEANS GAMES WILL BEGIN AT 830 PM IN THE NATION'S MOST DENSELY POPULATED REGION AND YOUNGSTERS WILL AGAIN BE SHUT OUT OF MUCH OF BASEBALL'S SHOWCASE EVENT BUT THAT COULD BE BETTER THAN THE ALTERNATIVE THE ALTERNATIVE IS EXPOSING YOUNG EYES TO LARGE DOSES OF THE PHILLIES THE UNEXPECTED WINNERS OVER THE ATLANTA BRAVES IN THE SIXGAME NL PLAYOFF THAT ENDED HERE WEDNESDAY NIGHT THE PHILS AREN'T XRATED OF COURSE WE'RE TALKIN' BASEBALL HERE BUT THEY'RE DEFINITELY PG13 BASEBALL ALWAYS HAS BEEN THE GAME OF SPIT AND SCRATCH BUT THESE GUYS HAVE AT LEAST DOUBLED ITS GRUBBINESS QUOTIENT THEIR PREDOMINANT HAIRSTYLE IS SHORT IN FRONT AND LONG AND SCRAGGLY IN BACK THEIR USUAL SHAVING SCHEDULE IS ONCE EVERY THREE OR FOUR DAYS YOU WON'T SEE IT ON YOUR TUBE BUT SOME OF 'EM ARE GASP TATTOOED TOBACCO CHEWING IS REGRETTABLY WELL ENTRENCHED IN THE NATIONAL PASTIME THE POWERS THAT BE BANNED IT IN THE MINOR LEAGUES THIS YEAR BUT DARED NOT TAKE ON THE BIG GUYS AND NOBODY CHEWS AS WANTONLY OR SLOPPILY AS THE PHILS LENNY DYKSTRA THEIR GRITTY CENTER FIELDER CARRIES THE OFFICIAL NICKNAMES OF NAILS AS IN TOUGH AS AND DUDE WHICH IS WHAT HE CALLS EVERYBODY BUT TJ FOR TOBACCO JUICE WOULD BE MORE APPROPRIATE EVEN THEIR MANAGER JIM FREGOSI LEAVES AS MUCH OF HIS CHAW OUTSIDE HIS MOUTH AS IN ONE CAN IMAGINE THE EFFECTS OF THESE GROWNUP PIG PENS ON SPICANDSPAN TORONTO THE MUNICIPALITY PROBABLY WILL ASSIGN A SANITATION CREW TO FOLLOW THEM AROUND OFF THE FIELD AND ON THIS IS THE IMAGE IS EVERYTHING ERA OF COURSE SO IT'S NOT UNLIKELY THAT THE PHILS ARE AWARE OF THE IMPRESSION THEY MAKE AND ITS POTENTIAL FOR LULLING FOES THE FACT IS THAT WHEN IT COMES TO BASEBALL THEY'VE BEEN ADMIRABLY EFFICIENT ESPECIALLY IN MATTERS OF THE BOTTOM LINE FOLLOWING SAM SNEAD'S OLD GOLFING DICTUM THAT NOBODY ASKS HOW JUST HOW MANY THEY WON 97 TIMES DURING THE REGULAR SEASON AND AFTER FINISHING LAST THE YEAR BEFORE HELD FIRST PLACE IN THEIR DIVISION THE NL EAST EVERY DAY THIS SEASON SAVE ONE AND IF PARTS OF THEIR PLAYOFF TRIUMPH AGAINST THE FAVORED BRAVES SEEMED PROVIDENTIAL ITS FINALE A 63 WIN AGAINST ATLANTA'S GREG MADDUX THEIR LEAGUE'S BEST PITCHER OR CLOSE TO IT WAS EMPHATIC WITH SHARP PITCHING BY EXBRAVE TOMMY GREENE TIMELY LONGBALL HITTING AND A DEFENSE THAT LOOKED ALL THE BETTER FOR THREE ERRORS BY THE SUDDENLY SHAKY BRAVES WE TALK A LOT ABOUT BEING MISFITS BUT WE'RE A GOOD BALL CLUB AND WE KNOW IT SAID THIRD BASEMAN DAVE HOLLINS WHOSE BOOMING TWORUN HOME RUN OFF MADDUX IN THE FIFTH INNING PROVIDED WHAT WOULD BE WEDNESDAY NIGHT'S WINNING RUNS YOU DON'T GET TO THE WORLD SERIES BY BEING A BUNCH OF CLOWNS YOU CAN GET TO THE SERIES IN CIRCUITOUS WAYS THOUGH THE PHILS WON THE FIRST PLAYOFF GAME AGAINST THE TWOTIME DEFENDING LEAGUE TITLISTS 43 WERE BURIED IN THE NEXT TWO BY 143 AND 94 SCORES THEN SQUEAKED THROUGH AGAIN BY ONERUN MARGINS 21 AND 43 IN GAMES FOUR AND FIVE ALTHOUGH AHEAD 32 AT THAT POINT IN GAMES THE ONLY STATISTICAL CATEGORY THAT REALLY COUNTS THEY'D BEEN OUTHIT 227 TO 290 OUTSCORED 1730 AND COMMITTED SIX FIELDING ERRORS TO THE BRAVES' TWO THEIR MOST EFFECTIVE STARTING PITCHER CURT SCHILLING HADN'T RECORDED A VICTORY AND THEIR ENTERTAINING BULLPEN CLOSER LEFTHANDER MITCH WILD THING WILLIAMS HAD BLOWN TWO OF THREE SAVE OPPORTUNITIES IN OTHER WORDS THEY HAD THE BRAVES RIGHT WHERE THEY WANTED THEM IF WE COULD WIN PLAYING THE WAY WE HAD WE KNEW THAT A GOOD EFFORT WOULD PUT US OVER THE TOP SAID CATCHER DARREN DAULTON ONE OF THE HANDFUL OF PHILLIES WHO WEREN'T OBTAINED IN TRADE OR VIA FREE AGENCY AS A VETERAN THAT EFFORT CAME BEFORE A FULL VETERANS STADIUM CROWD OF 62502 THAT SEEMED TO HAVE LITTLE TROUBLE CHANGING ITS CHARACTERISTIC BOOS TO RESOUNDING CHEERS THE HOME TEAM GAINED A 20 LEAD IN THE THIRD INNING ON DAULTON'S BASESLOADED DOUBLE STRETCHED IT TO 41 ON HOLLINS'S HOME RUN WITH SKINNY SECOND BASEMAN MICKEY MORANDINI ON BASE AND TO 61 ON MORANDINI'S TWORUN TRIPLE IN THE SIXTH RIGHTHANDER GREENE WHO WAS THE PHILS' BEST STARTER DURING THE REGULAR SEASON BUT WAS CLOBBERED FOR SEVEN RUNS IN 2 1/3 INNINGS IN GAME TWO THIS TIME WAS ON TARGET BEFORE SURRENDERING A TWORUN SEVENTHINNING HOMER TO ATLANTA'S JEFF BLAUSER DAVID WEST AND WILLIAMS THREW PERFECT RELIEF INNINGS FROM THERE THE NICE THING ABOUT PUTTING A TEAM DOWN 123 IS THAT YOU DON'T HAVE TO FACE NO 4 SAID THE LONGHAIRED SCRUFFILY BEARDED WILLIAMS WITH A SENSE ODISCOVERY HE ADDED MORE SERIOUSLY WE HOPE THE BLUE JAYS UNDERESTIMATE US THAT'LL MAKE OUR NEXT STEP EASIER IT'S UNLIKELY THAT WILL HAPPEN IF ONLY BECAUSE THE BLUE JAYS HAVE BEEN AROUND THE BLOCK A FEW TIMES THEMSELVES NOT ONLY ARE THEY THE DEFENDING CHAMPS THEY ALSO ADDED ABOUT 50 YEARS OF HIGHQUALITY EXPERIENCE SINCE THE END OF LAST SEASON WITH THE ADDITIONS OF DESIGNATED HITTER PAUL MOLITOR PITCHER DAVE STEWART OUTFIELDER RICKEY HENDERSON AND SHORTSTOP TONY FERNANDEZ THE JAYS' SAVVY GREW MORE EVIDENT AS THEIR AL PLAYOFF WITH THE CHICAGO WHITE SOX PROGRESSED UP TWO GAMES TO NONE AT ONE POINT THEN TIED AT 22 THEY WON GAME FIVE IN TORONTO AND GAME SIX IN CHICAGO ON TUESDAY NIGHT BY THE SAME 63 COUNT AS PHILADELPHIA'S WEDNESDAYNIGHT WIN THE TWO CLINCHING GAMES HAD MORE IN COMMON THAN SCORE LIKE THE BRAVES THE WHITE SOX COMMITTED THREE ERRORS AFIELD IN SURRENDERING THEIR TITLE HOPES PERHAPS INDICATING THAT DEEP DOWN THEY NEVER TOOK THEM TOO SERIOUSLY TO BEGIN WITH WITH THE MAJOR LEAGUES' MOST POTENT BATTING ORDER AND A PITCHING STAFF HEADED BY THE TALENTED JUAN GUZMAN AND THE PRESSURETEMPERED STEWART THE JAYS WILL BE FAVORED BUT AS THE BRAVES WILL ATTEST THAT AND A DOLLAR WILL GET YOU A CUP OF COFFEE THE JAYS' PRIZE FOR WINNING THE AL PENNANT WAS THREE DAYS IN PHILADELPHIA FOR NEXT WEEK'S GAMES THREE THROUGH FIVE SECOND PRIZE I GUESS WOULD BE SIX DAYS IN PHILLY 9310150186 931015 COMPUTERS THEY'RE NO COMMODITY BY KYLE POPE DESPITE ALL THE TALK OF THE COMMODITIZATION OF THE PERSONAL COMPUTER INDUSTRY A NEW SURVEY OF BUSINESS USERS SUGGESTS THAT PC BUYERS PAY ATTENTION TO THE BRAND NAME ON THE FRONT OF THE MACHINE MCKINSEY & CO AND INTELLIQUEST INC AN AUSTIN TEX RESEARCH FIRM ASKED 300 COMPUTER BUYERS WHAT IS THE INCREMENTAL DOLLAR VALUE YOU WOULD BE WILLING TO PAY OVER THE AVERAGE COMPUTER BRAND AT THE TOP INTERNATIONAL BUSINESS MACHINES CORP COMPAQ COMPUTER CORP APPLE COMPUTER INC AND DIGITAL EQUIPMENT CORP LOWERTIER VENDORS LIKE ZEOS INTERNATIONAL LTD AND PACKARDBELL ELECTRONICS INC ACTUALLY PRODUCED NEGATIVE NUMBERS MEANING THAT CONSUMERS WILL BUY THOSE BRANDS ONLY IF THEY'RE DISCOUNTED THE RESULTS ALSO SHOW THAT A COMPUTER'S BRAND NAME RANKS SECOND BEHIND PERFORMANCE IN THE LIST OF WHAT'S MOST IMPORTANT WHEN CONSIDERING THE PURCHASE OF A PC PRICE THE SUBJECT OF SO MUCH RECENT ATTENTION RANKS FIFTH ANALYSTS SAY THIS MEANS MORE TROUBLE FOR THE INDUSTRY'S SMALLER PLAYERS WITH PRICE A LESS IMPORTANT FACTOR THE BATTLE WILL INCREASINGLY FOCUS ON IMAGE AND ON WHAT PEOPLE AT INTELLIQUEST CALL BRAND EQUITY COMPUTER COMPANIES CAN IMPROVE THEIR BRAND IMAGE BY ADVERTISING OR BY PRODUCING A TECHNOLOGICAL INNOVATION AN OPTION LESS AVAILABLE TO INDUSTRIES LIKE PACKAGED GOODS TO THE PEOPLE WHO SELL COMPUTERS THE SURVEY'S FINDINGS CONFIRM RECENT TRENDS IN THE PAST SIX MONTHS COMPAQ AND IBM HAVE CONTINUED TO GOBBLE UP MARKET SHARE PARTLY BECAUSE OF NOHOLDSBARRED PRICING STRATEGIES THAT SLICED AWAY THE ONLY ADVANTAGE SOME SMALLER COMPETITORS HAD MEANWHILE SOME LESSER PLAYERS LIKE COMPUADD COMPUTER CORP AND EVEREX SYSTEMS INC HAVE FILED FOR BANKRUPTCY PROTECTION THE IDEA THAT YOU WOULD BE WILLING TO PAY FOR A BRAND NAME IN CEREAL AND NOT IN COMPUTERS IS BEYOND ME SAYS AVERY MORE PRESIDENT OF COMPUCOM SYSTEMS INC A DALLASBASED PC DISTRIBUTOR 9310150185 931015 WHAT'S NEWS WORLDWIDE ASSASSINS KILLED HAITI'S JUSTICE MINISTER AND THE US CONSIDERED NEW ACTION JUSTICE MINISTER MALARY WHO FAVORED THE RETURN OF OUSTED PRESIDENT ARISTIDE WAS ATTACKED BY GUNMEN WHO ALSO KILLED AT LEAST TWO OTHER PEOPLE THE SLAYINGS CAME ON A DAY WHEN PRESIDENT CLINTON EXPRESSED CONCERN ABOUT THE SAFETY OF NEWLY INSTALLED PRIME MINISTER MALVAL AND VOWED THAT THE US WOULD ACT UNILATERALLY TO SEE THAT DEMOCRACY IS RESTORED DEFENSE DEPARTMENT OFFICIALS SAID THE US IS CONSIDERING MOVING WARSHIPS TO WATERS OFF HAITI TO ENFORCE UN TRADE SANCTIONS AGAINST THE COUNTRY HAITI'S POLICE CHIEF PLEDGED NEVER TO GIVE UP POWER AND HIS SUPPORTERS SAID THEY WOULD PARALYZE PORTAUPRINCE WITH A GENERAL STRIKE MONDAY THE DAY THE UN SANCTIONS GO INTO EFFECT A US PILOT WAS FREED IN SOMALIA BY AIDID WHO CAME OUT OF HIDING THE SOMALI CLAN LEADER SUMMONED JOURNALISTS TO ANNOUNCE THE RELEASE OF HELICOPTER PILOT MICHAEL DURANT HELD FOR 11 DAYS AND A NIGERIAN SOLDIER CAPTURED LAST MONTH CLINTON HAILED THE MOVE AS A SIGN WE ARE MOVING IN THE RIGHT DIRECTION MEANWHILE SENATE LEADERS AGREED ON AN AMENDMENT TO PRESERVE THE PRESIDENT'S MARCH 31 DEADLINE FOR BRINGING US TROOPS HOME GOP SENATORS SAID CLINTON WAS VAGUE WHEN QUESTIONED ABOUT WHETHER HE WOULD PURSUE A UN RESOLUTION CALLING FOR THE ARREST OF AIDID BUT THE PRESIDENT SAID NO DEAL WAS MADE FOR THE RELEASE OF DURANT YELTSIN'S GOVERNMENT BANNED 15 OPPOSITION NEWSPAPERS AND ONE TELEVISION PROGRAM ON GROUNDS THEY HELPED ORGANIZE AN ARMED PARLIAMENTARY REVOLT AND WERE DESTABILIZING RUSSIA MOST OF THE PAPERS ALREADY HAD BEEN SUSPENDED UNDER A STATE OF EMERGENCY IMPOSED BY THE PRESIDENT AFTER HE CRUSHED THE REVOLT EARLIER THIS MONTH A HUMANITARIAN CONVOY WAS CANCELED IN NORTHCENTRAL BOSNIA AFTER SERB AUTHORITIES HELD IT UP FOR FIVE DAYS THE 24TRUCK UN CONVOY HAD BEEN HEADED FOR THE BESIEGED MUSLIM TOWNS OF MAGLAJ AND TESANJ IN SARAJEVO OFFICIALS WARNED RESIDENTS TO STAY INSIDE AS THE CAPITAL CAME UNDER SOME OF THE WORST SHELLING IN WEEKS ISRAELI AND PLO NEGOTIATORS AGREED ON AN AGENDA FOR TALKS ON TRANSFERRING POWER TO PALESTINIANS LIVING IN OCCUPIED TERRITORIES THE OFFICIALS MEETING IN TABA EGYPT ALSO SET UP A COMMITTEE TO CONSIDER THE FATE OF 12000 PALESTINIANS WHO HAVE BEEN IMPRISONED OR DEPORTED BY ISRAEL FOR FIGHTING THE 26YEAROLD ISRAELI OCCUPATION TWO RIGHTWING WHITE MEN WERE FOUND GUILTY IN THE APRIL SLAYING OF A POPULAR SOUTH AFRICAN BLACK POLITICIAN CHRIS HANI BUT A THIRD DEFENDANT THE WIFE OF ONE OF THE CONVICTED MEN WAS ACQUITTED BY THE JOHANNESBURG JUDGE EVOKING CRIES FROM BLACK LEADERS THAT THE MASTERMIND OF THE ASSAS SINATION HAD BEEN FREED PRIME MINISTER PAPANDREOU STUNNED MANY GREEKS BY NAMING HIS SECOND WIFE DIMITRA TO BE HIS CHIEF OF STAFF IN A NEW SOCIALIST GOVERNMENT PAPANDREOU 74 RETURNED TO POWER AFTER WINNING SUNDAY'S VOTE HIS ADULTEROUS AFFAIR WITH DIMITRA NOW 38 BECAME AN ISSUE IN THE 1989 ELECTION WHICH HE LOST ARGENTINA'S PRESIDENT UNDERWENT EMERGENCY SURGERY FOR A BLOCKAGE IN A NECK ARTERY MENEM 63 THE ARCHITECT OF ARGENTINA'S ECONOMIC RECOVERY OVER THE PAST FOUR YEARS WAS BEING DRIVEN TO THE BUENOS AIRES AIRPORT WHEN HE WAS STRICKEN HE HAS BEEN PUSHING FOR A CONSTITUTIONAL REFORM TO ENABLE HIM TO RUN FOR A SECOND SUCCESSIVE TERM THE BOY SCOUTS OF AMERICA DISMISSED 1800 SCOUTMASTERS SUSPECTED OF MOLESTING BOYS BETWEEN 1971 AND 1991 BUT SOME OF THEM MOVED TO OTHER TROOPS AND CONTINUED TO ABUSE SCOUTS ACCORDING TO AN ASSOCIATED PRESS REVIEW OF FILES OBTAINED BY A CALIFORNIA LAWYER THE ORGANIZATION SAYS IT HAS BEEN A LEADER IN FIGHTING SUCH ABUSES SECRETARY OF STATE CHRISTOPHER SAID HE WOULD URGE UKRAINIAN OFFICIALS NEXT WEEK TO KEEP THEIR PROMISE TO ELIMINATE 176 INTERCONTINENTAL BALLISTIC MISSILES AND STRIP 40 LONGRANGE BOMBERS OF NUCLEAR WEAPONS HE LEAVES WEDNESDAY ON A TRIP TO RUSSIA UKRAINE KAZAKHSTAN AND BELARUS THE HOUSE REJECTED ANOTHER ATTEMPT TO CUT FEDERAL MONEY FOR THE ARTS BY CONSERVA TIVE LEGISLATORS WHO SAID SOME OF THE FUNDED WORKS WERE OBSCENE THE LAWMAKERS VOTED 304119 TO EXTEND NATIONAL ENDOWMENT FOR THE ARTS FUNDING FOR TWO YEARS 9310150184 931015 SEC CHAIRMAN FOCUSES ON MUNI BONDS IN MEETING TO DEAL WITH POLITICAL GIFTS BY JOHN CONNOR SPECIAL TO THE WALL STREET JOURNAL WASHINGTON SECURITIES AND EXCHANGE COMMISSION CHAIRMAN ARTHUR LEVITT'S PERSONAL INVOLVEMENT IN MUNICIPAL BOND MATTERS WILL ASSUME A HIGH PROFILE MONDAY WHEN HE HOSTS A MEETING WITH WALL STREET LEADERS AIMED AT REMOVING POLITICAL GIFTS AS A FACTOR IN WINNING MUNICIPAL BUSINESS THE SEC MEETING TO BE ATTENDED BY SENIOR EXECUTIVES OF LEADING FIRMS WILL FOCUS ON A VOLUNTARY INITIATIVE SPEARHEADED BY PRIMERICA CORP VICE CHAIRMAN FRANK ZARB TO CURB MUNILINKED POLITICAL PAYMENTS WHETHER THE SESSION CAN PRODUCE A CONSENSUS AMONG MAJOR MARKET PLAYERS REMAINS TO BE SEEN INDUSTRY OFFICIALS AND REGULATORS HAVE CAUTIONED THE MEETING COMES AS REGULATORY AND INDUSTRY ACTIONS ALREADY HAVE SLOWED THE FLOW OF POLITICAL DOLLARS FROM MUNI UNDERWRITERS TO STATE AND LOCAL OFFICIALS AT LEAST TEMPORARILY AT THE SAME TIME THE SEC HAS BEEN SIFTING THROUGH DATA ON POLITICAL PAYMENTS PROVIDED VOLUNTARILY BY SOME 70 FIRMS AND AUTHORITIES HAVE BEEN INVESTIGATING SPECIFIC ALLEGATIONS OF ILLEGAL PAYOFFS MR LEVITT WHOSE FATHER WAS A LONGTIME COMPTROLLER OF NEW YORK STATE HAS SHOWN A KEEN INTEREST IN TACKLING MUNI PROBLEMS SINCE HE ASSUMED THE HELM OF THE SEC ON WEDNESDAY HE EXHORTED ABOUT 50 MUNI MARKET PARTICIPANTS AT A CLOSEDDOOR MEETING IN NEW YORK CITY TO PRESS AHEAD WITH VOLUNTARY AND SELFREGULATORY EFFORTS TO CURE MUNI SORE SPOTS INCLUDING PAYTOPLAY POLITICAL GIFTS BY UNDERWRITERS A CENTRAL TENET OF THE VOLUNTARY APPROACH TO BE DISCUSSED AT MONDAY'S MEETING IS THAT NO CONTRIBUTION MAY BE GIVEN IF IT EVEN GIVES THE APPEARANCE OF ATTEMPTING TO INFLUENCE THE SELECTION OF AN UNDERWRITER PRIMERICA'S MR ZARB AN ORGANIZER OF THE EFFORT SAID IN LETTERS TO CHIEF EXECUTIVES PARTICIPATING IN THE INITIATIVE THE SEC DECLINED TO LIST THE FIRMS INVITED TO MONDAY'S MEETING BUT AN OFFICIAL SAID 10 OR SO MAJOR FIRMS HAVE BEEN INVITED AMONG THOSE KNOWN TO BE PLANNING TO ATTEND ARE MERRILL LYNCH & CO CHAIRMAN DANIEL TULLY AND MR ZARB ON BEHALF OF PRIMERICA'S SMITH BARNEY SHEARSON UNIT OTHER FIRMS EXPECTED TO BE REPRESENTED AT THE MEETING INCLUDE GOLDMAN SACHS & CO AMERICAN EXPRESS CO'S LEHMAN BROTHERS INC AND THE PRUDENTIAL INSURANCE CO OF AMERICA'S PRUDENTIAL SECURITIES UNIT MR LEVITT INVITED CHIEF EXECUTIVES TO BRING THEIR GENERAL COUNSELS AND PUBLIC FINANCE CHIEFS A WALL STREET EXECUTIVE PREPARING TO ATTEND THE SEC MEETING SAID HE EXPECTS IT TO YIELD A STATEMENT OF PRINCIPLES BY A GROUP OF HIGHLEVEL EXECUTIVES AND THAT MR LEVITT WILL EMBRACE THE EFFORT HE SAID ANY SUCH AGREEMENT WOULD SUPPLY MORAL HEFT TO BUTTRESS THE PENDING REGULATORY EFFORT TO LIMIT MUNIRELATED POLITICAL GIFTS MANY BOND UNDERWRITING HOUSES IN RECENT DAYS HAVE CLAMPED TEMPORARY BANS ON THEIR POLITICAL GIFTS UNTIL REGULATORS COMPLETE ACTION ON AN ANTIPAYOFF RULE PROPOSED BY THE MUNICIPAL SECURITIES RULEMAKING BOARD A SELFREGULATORY BODY SUBJECT TO SEC OVERSIGHT A FINAL RULE IS EXPECTED NO SOONER THAN NEXT SPRING THE VOLUNTARY EFFORT TO BE DISCUSSED MONDAY WAS PLANNED LONG BEFORE THE TEMPORARY MORATORIUM WAS RECOMMENDED BY THE PUBLIC SECURITIES ASSOCIATION A BONDTRADE GROUP TO PROTECT ITS MEMBER FIRMS FROM REGULATORY RETRIBUTION BACKERS OF THE VOLUNTARY APPROACH ARE LOOKING FOR A PERMANENT SOLUTION CHRISTOPHER TAYLOR EXECUTIVE DIRECTOR OF THE RULEMAKING BOARD SAID HE EXPECTS ANY VOLUNTARY EFFORT TO BE CONSISTENT WITH THE BOARD'S PROPOSAL WHICH WOULD PROHIBIT MUNI DEALERS FROM MAKING CONTRIBUTIONS TO STATE AND LOCAL OFFICIALS FOR THE PURPOSE OF OBTAINING OR RETAINING MUNI BUSINESS AND WOULD REQUIRE DETAILED DISCLOSURES AND INTERNAL CONTROLS 9310150183 931015 BODY SHOP REPORTS RISE IN PRETAX PROFIT OF 20 FOR FIRST HALF SPECIAL TO THE WALL STREET JOURNAL LONDON UK RETAILER BODY SHOP INTERNATIONAL PLC SAID THAT PRETAX PROFIT ROSE 20 TO 10 MILLION 152 MILLION IN THE SIX MONTHS ENDING AUG 31 1993 MOSTLY ON AN IMPROVEMENT IN INTERNATIONAL TRADING BODY SHOP'S INTERIM PRETAX PROFIT COMPARES WITH 83 MILLION A YEAR EARLIER AND IS HIGHER THAN PRIOR MARKET EXPECTATIONS FOR A FIGURE OF BETWEEN 88 MILLION AND 93 MILLION THE COMPANY ALSO ANNOUNCED A 10 INCREASE IN THE INTERIM DIVIDEND TO 075 PENCE A SHARE FROM 068 PENCE A SHARE BODY SHOP ATTRIBUTED IMPROVED RESULTS TO CONTINUED GROWTH IN ITS INTERNATIONAL BUSINESS AND SIGNS OF AN IMPROVING TRADING PATTERN IN THE UK SALES IN THE PERIOD GREW BY 23 TO 828 MILLION FROM 672 MILLION A YEAR EARLIER A BREAKDOWN OF THE FIGURES SHOWS THAT UK SALES ACCOUNTED FOR 374 MILLION WHILE THE US REPRESENTED A 199 MILLION SHARE AND INTERNATIONAL SALES ACCOUNTED FOR 255 MILLION LIKEFORLIKE SALES IN THE UK DECLINED 5 IN THE PERIOD WHILE THEY GREW 4 IN THE US RETAIL SALES GREW 23 IN EUROPE 44 IN ASIA AND 11 IN CANADA AND AUSTRALIA TOGETHER IN A STATEMENT BODY SHOP SAID IT OPENED FOUR NEW STORES IN THE UK DURING THE FIRST HALF WHILE 20 NEW STORES WERE OPENED IN THE US IN THE SAME PERIOD THE EXPECTED SLOWDOWN IN SHOP OPENING SIGNALS IN THE TRANSITION OF THE BODY SHOP INTO A MATURE RETAILER IN THE UK THE COMPANY SAID IT ADDED THAT IN THE US WE SEEM TO BE APPROACHING THE CRITICAL MASS WHERE RECOGNITION AND CUSTOMER AWARENESS GATHERS MOMENTUM BODY SHOP RECENTLY ESTABLISHED AN AMERICAN DEPOSITARY RECEIPT TRADING FACILITY BUT SAID IT HAS NO PLANS TO OBTAIN AN ADR LISTING ON EITHER NASDAQ OR THE NEW YORK STOCK EXCHANGE IN THE NEAR FUTURE 9310150182 931015 SMALL BUSINESS A SPECIAL REPORT FIRST STEPS THE ELECTRONIC EDGE HIGHTECH TOOLS CAN GIVE NEEDED LEVERAGE TO SMALL STARTUPS HERE ARE A FEW OF THE OPTIONS BY TIMOTHY L O'BRIEN FOR BUDDING ENTREPRENEURS A HIGHTECH OFFICE ISN'T A LUXURY ANYMORE IT'S A NECESSITY SMALL BUSINESSES NEED TO INVEST IN TECHNOLOGY EVEN MORE THAN BIG BUSINESSES BECAUSE THEIR SMALL STAFFS ARE OFTEN STRETCHED THIN AND NEED EVERY BOOST TO PRODUCTIVITY THEY CAN GET SAYS HILLARY RETTIG PRESIDENT OF RCS INC A FOREST HILLS NY COMPUTERCONSULTING CONCERN YOU SHOULD MAKE INVESTMENT IN COMPUTERS A CRITICAL PART OF YOUR BUSINESS PLAN BECAUSE IT CAN MAKE OR BREAK YOUR BUSINESS FORTUNATELY TECHNOLOGY DESIGNED WITH SMALL BUSINESS IN MIND IS PROLIFERATING AND IT IS CHEAPER THAN EVER PRICE WARS HAVE DRIVEN THE COST OF A POWERFUL PERSONAL COMPUTER DOWN TO ABOUT 2000 ABOUT HALF OF WHAT IT COST AS RECENTLY AS A YEAR AND A HALF AGO YOU CAN LITERALLY START WITH A LAPTOP COMPUTER THAT YOU CAN THEN CONNECT WITH MORE POWERFUL DESKTOP MACHINES WITHOUT ANY EXTRA PROGRAMMING COSTS SAYS JACK CALHOUN A PRINCIPAL WITH BUSINESS ARCHITECTS INC A BOSTON CONSULTING FIRM YOU DON'T NEED A BIG INVESTMENT IN COMPUTERS ANYMORE TO GET STARTED AND MORE COMPUTER AND SOFTWARE COMPANIES ARE TURNING THEIR ATTENTION TO THE SMALLBUSINESS USER MICROSOFT CORP THE REDMOND WASH SOFTWARE GIANT HAS BEEN AGGRESSIVELY COURTING SMALL BUSINESSES IN AN EFFORT TO SELL THEM ON THE ADVANTAGES OF COMPUTING THE COMPANY SAYS THE STRATEGY TRIES TO MEET THE NEEDS OF USERS PREVIOUSLY OVERLOOKED IN FAVOR OF COURTING FORTUNE 500 CONCERNS DESPITE THE EFFICIENCIES OFFERED BY PERSONAL COMPUTERS MANY SMALL BUSINESSES STILL DON'T HAVE THEM FOR INSTANCE LINK RESOURCES CORP A NEW YORK RESEARCH FIRM SAYS ONLY 58 OF HOMEBASED BUSINESSES HAVE PLUGGED INTO COMPUTERS BUT TO AVOID PURCHASING A PERSONAL COMPUTER THESE DAYS MEANS FORGOING THE VAST ARRAY OF SOFTWARE PROGRAMS ONLINE DATABASE SERVICES AND TELECOMMUNICATIONS ENHANCEMENTS THAT ARE ACCESSIBLE VIA COMPUTER DEBORAH DOELKER WHOSE NEW YORK COMPANY DOELKER INC PUBLISHES AN ANNUAL REPORT THAT RATES AFRICAN SAFARI TOURS SAYS SHE DID MOST OF HER OFFICE WORK BY HAND UNTIL SHE SPENT 2500 ON NEW COMPUTER HARDWARE AND SOFTWARE THREE YEARS AGO IT'S MEANT GOING FROM THE STONE AGE TO 1993 SHE SAYS IT WAS ABSOLUTELY WORTH THE MONEY MS DOELKER SAYS SHE WAS ABLE TO COLLATE TRAVEL DATA AND TOUR RATINGS MUCH FASTER AND MORE EFFECTIVELY WITH A COMPUTER SHE SAYS THE INCREASED PRODUCTIVITY HAS HELPED HER INCREASE SALES TO AN EXPECTED 800000 THIS YEAR FROM 500000 THE YEAR SHE INSTALLED HER COMPUTER SYSTEM SHE NO LONGER NEEDS TO PAY A BOOKKEEPER EITHER HERE'S A LOOK AT SOME OF THE SOFTWARE HIGHTECH GADGETS AND ONLINE SERVICES THAT CONSULTANTS RECOMMEND FOR THE ENTREPRENEUR STARTING OUT ACCOUNTING INCREASINGLY ACCOUNTING PACKAGES ARE BEING WRITTEN TO ACCOMMODATE THE ENTREPRENEUR WHO IS NOT AN ACCOUNTANT THE BEST SOFTWARE SIMPLY ASKS THE USER TO PROVIDE BASIC FINANCIAL INFORMATION WHICH THE COMPUTER THEN ENTERS INTO TRADITIONAL ACCOUNTING CATEGORIES THIS MAKES IT SIMPLE FOR SMALLBUSINESS OWNERS TO DO MOST OF THEIR OWN BOOKKEEPING AND TO TRACK BILLING AND CASH FLOW MORE EFFICIENTLY FOR A SMALL CASHBASED BUSINESS PERSONALFINANCE PROGRAMS SUCH AS QUICKEN FROM INTUIT INC MENLO PARK CALIF OR MICROSOFT MONEY OFFER ENOUGH FEATURES TO PERFORM BASIC ACCOUNTING EACH PACKAGE HAS A SUGGESTED RETAIL PRICE OF ABOUT 70 THE ACTUAL STORE PRICE IS OFTEN LOWER LARGER BUSINESSES WITH MORE DATA TO TRACK CAN CHOOSE AMONG SEVERAL ACCOUNTING PACKAGES THAT ARE MORE SOPHISTICATED YET STILL USER FRIENDLY ACCORDING TO ELLEN DEPASQUALE A CONSULTANT WITH RCS BOTH INTUIT AND MICROSOFT OFFER THESE FANCIER PACKAGES BUT MS DEPASQUALE SAYS EASE OF USE MAKES PEACHTREE ACCOUNTING FOR WINDOWS HER PERSONAL FAVORITE PEACHTREE SOFTWARE NORCROSS GA MAKES THE PRODUCT WHICH HAS A SUGGESTED RETAIL PRICE OF 169 DESKTOP PUBLISHING DESKTOPPUBLISHING OPTIONS ALSO RUN THE GAMUT FROM SIMPLE AND INEXPENSIVE TO COMPLEX AND PRICEY ON THE SIMPLE SIDE MICROSOFT PUBLISHER WHICH HAS A LIST PRICE OF 199 ALLOWS THE ENTREPRENEUR TO PREPARE NEWSLETTERS BROCHURES AND OTHER BUSINESS DOCUMENTS FOR DESIGNERS AND OTHERS WHO NEED MORE ADVANCED GRAPHIC APPLICATIONS PAGEMAKER FROM ALDUS CORP A SEATTLE SOFTWARE MAKER AND QUARK XPRESS FROM QUARK INC OF DENVER LIST FOR 895 EACH SCHEDULING MANY CONSULTANTS RECOMMEND A PERSONALINFORMATION MANAGEMENT SYSTEM OR PIM FOR SCHEDULING AND OTHER FORMS OF TIME MANAGEMENT DESKTOP SET FROM OKNA CORP OF PARAMUS NJ LISTS FOR 89 IT ALLOWS THE USER TO PRINT DAILY WEEKLY AND MONTHLY ITINERARIES AND MAKE PHONE CALLS FROM A COMPUTER WITH A PHONE AND ADDRESS BOOK DESIGNED BY THE USER SCANNING ANY ENTREPRENEUR WHO EXPECTS TO CONFRONT A LARGE AMOUNT OF PAPERWORK CAN BUY AN ELECTRONIC SCANNER A SCANNER CAN READ PAPER DOCUMENTS AND GRAPHIC IMAGES INTO A COMPUTER AND THEY CAN EASILY BE RECALLED SPECIFIC INFORMATION CAN THEN BE SEARCHED QUICKLY GETTING RID OF UNNEEDED PAPER ALSO SAVES ON STORAGE SPACE HEWLETTPACKARD CO'S SCANJET IIP SCANNER LISTS FOR 879 PRINTERS QUALITY PRINTERS HAVE PLUNGED IN PRICE HEWLETTPACKARD'S LASERJET 4L LASER PRINTER HAS A LIST PRICE OF 849 DOWN FROM 1495 FOR A COMPARABLE PRODUCT FIVE YEARS AGO THE COMPANY'S DESKJET 500 INKJET PRINTER LISTS FOR 365 DOWN FROM 439 JUST A FEW MONTHS AGO MODEMS AND ONLINE SERVICES MODEMS WHICH ALLOW COMPUTERS TO CONNECT TO TELEPHONE LINES ENABLE A SMALL BUSINESS TO GAIN ACCESS TO A WIDE VARIETY OF ONLINE DATABASE SERVICES THESE SERVICES SUCH AS PRODIGY AND COMPUSERVE CAN PUT AN ENTREPRENEUR IN TOUCH WITH OTHERS IN THE SAME BUSINESS MANY BUSINESS OWNERS ALSO FIND THEM INVALUABLE FOR DOITYOURSELF MARKET RESEARCH OR BASIC INFORMATION GATHERING ENTRENET CORP BASKING RIDGE NJ LAST YEAR STARTED AN ONLINE SERVICE TARGETED SPECIFICALLY AT HOMEBASED BUSINESSES THE NONPROFIT COMPANY OFFERS MEMBERS INFORMATION ON SMALLBUSINESS PROGRAMS ELECTRONICMAIL COMMUNICATION WITH OTHER MEMBERS AND A LISTING IN ITS BUSINESS DIRECTORY MEMBERSHIP IS 89 A YEAR SPECIAL MODEMS KNOWN AS FAX MODEMS ALSO LET COMPUTER USERS TRANSMIT FAXES DIRECTLY FROM A COMPUTER SCREEN INTEL CORP SANTA CLARA CALIF SELLS A LINE OF FAX MODEMS THAT HAVE LIST PRICES RANGING FROM 79 TO 299 EMAIL RADIOMAIL CORP SAN MATEO CALIF PROVIDES WIRELESSCOMMUNICATION SERVICES TO THOSE WHO HAVE HANDHELD OR LAPTOP COMPUTERS EQUIPPED WITH A RADIO MODEM USING RADIO WAVES RADIOMAIL CAN HAVE ELECTRONICMAIL MESSAGES AND CONVERSATIONS TRANSMITTED BETWEEN COMPUTERS ANYWHERE IN THE COUNTRY A RADIO MODEM COSTS 775 THE SERVICE COSTS 89 A MONTH WITH A 99 INITIAL FEEEXPENSIVE BUT IT DOES FREE THE WANDERING ENTREPRENEUR FROM THE TELEPHONE TELEPHONES TELEPHONES REMAIN OF COURSE A BASIC PART OF ANY OFFICE TELEPHONE COMPANIES OFFER VOICEMAIL ANSWERING SERVICES AND MULTIPARTY CONFERENCING IF KEEPING IN CLOSE TOUCH WITH THAT TELEPHONE WHILE TRAVELING IS ESSENTIAL PAGERS AND OTHER MESSAGE DEVICES ARE AVAILABLE MACRONIX INC A SAN JOSE CALIF COMMUNICATIONS COMPANY SELLS THE VOMAX 2000 A 400 COMBINATION ANSWERING MACHINE FAX MODEM AND MESSAGE SYSTEM WHEN CONNECTED TO A COMPUTER AND TELEPHONE LINE THE VOMAX CAN RECEIVE STORE AND FORWARD FAXES AND PHONE MESSAGES VIA PAGER IT AUTOMATICALLY LETS THE USER KNOW WHEN ANY MESSAGES ARE WAITING VIDEO CONFERENCING VIDEO CONFERENCING MAY BE MORE THAN MANY ENTREPRENEURS NEED BUT PICTURETEL CORP BASED IN DANVERS MASS RECENTLY UNVEILED A DESKTOP SYSTEM THE PCS 100 THAT LISTS FOR 6000 PER UNIT FOR SMALL BUSINESSES THAT HAVE BRANCHES OR AFFILIATES IN OTHER CITIES VIDEO CONFERENCING MIGHT EVENTUALLY PAY FOR ITSELF THROUGH SAVINGS ON AIR FARES MR O'BRIEN IS A STAFF REPORTER IN THE WALL STREET JOURNAL'S NEW YORK BUREAU 9310150181 931015 SMALL BUSINESS A SPECIAL REPORT FIRST STEPS MORE THAN MONEY SOME CALL IT IRRELEVANT BUT THE SBA CAN BE A RICH RESOURCE FOR THE ENTREPRENEUR BY JEANNE SADDLER TO PEOPLE STARTING THEIR OWN COMPANIES THE SMALL BUSINESS ADMINISTRATION MEANS LOAN GUARANTEES THAT MAKE IT POSSIBLE TO BORROW FROM NERVOUS BANKERS AN SBA GUARANTEE CAN MEAN THE DIFFERENCE BETWEEN STAYING AFLOAT OR GOING UNDER OR BETWEEN STAGNATION AND GROWTH SAYS JANINE PERRIGNON VICE PRESIDENT OF COMMERCIAL BANK OF SAN FRANCISCO TO MANY OTHER SMALLBUSINESS PEOPLE THE AGENCY HAS SO LITTLE IMPACT IT BORDERS ON IRRELEVANCE PRESIDENT REAGAN CHAMPION OF THE ENTREPRENEUR TWICE PROPOSED ABOLISHING IT IN THE LATE 1980S FRANK SWAIN THEN THE SBA'S CHIEF COUNSEL FOR ADVOCACY SAID SUPPORT FOR THE AGENCY AMONG ENTREPRENEURS IS ABOUT A MILE WIDE AND AN INCH DEEP BUT FOR SMALLBUSINESS PEOPLE WHO KNOW WHERE TO LOOK THE AGENCY OFFERS MANY SERVICES BESIDES THE LOAN GUARANTEES FROM COUNSELING BUSINESS OWNERS TO HELPING THEM WIN GOVERNMENT CONTRACTS DOMINICK PEROTTI THE OWNER OF DOMINICK HAIR CARE CENTER INC IN ST LOUIS SAYS HE WOULDN'T BE IN BUSINESS TODAY IF HE HADN'T TAKEN A YEARLONG SERIES OF SBASPONSORED BUSINESS COURSES FOR VETERANS FIVE YEARS AGO HE WAS PLANNING TO SELL THE BUSINESS AND BECOME A TEACHER UNTIL THE COURSES GOT HIM FIRED UP ABOUT THE ECONOMIC ROLE OF SMALL BUSINESS THEY ALSO TAUGHT HIM SOME BASIC ACCOUNTING AND MANAGEMENT TECHNIQUES INCLUDING HOW TO DO A SPREADSHEET AND HOW TO TALK TO A BANKER ABOUT FINANCES THE HAIR SALON HAS GROWN TO SEVEN EMPLOYEES AND ANNUAL REVENUE OF MORE THAN 100000 FROM ONE EMPLOYEE AND 30000 IN 1988 THE COURSES MADE ME TAKE A TOTALLY DIFFERENT LOOK AT THE BUSINESS MR PEROTTI SAYS I'M NOT ANY BETTER AT CUTTING HAIR THAN BEFORE BUT I BRING IN FOUR TIMES AS MUCH REVENUE AND I HAVE THREE TIMES AS MANY EMPLOYEES LOCAL SBA OFFICIALS HAVE STAYED IN TOUCH WITH HIM AFTER THE COURSES AT NO CHARGE TO MR PEROTTI THEY RECENTLY SENT A CONSULTANT TO HELP HIM DECIDE WHETHER TO BUY A COMPUTER HE NOW PLANS TO GET ONE BUT HASN'T SETTLED ON A MODEL FOR WOMEN ONLY CYNTHIA HARRISON STARTED AUTOMATION MANAGEMENT SERVICES CO A SILVER SPRING MD DATAPROCESSING FIRM IN 1989 AFTER TAKING AN SBA BUSINESSDEVELOPMENT COURSE FOR WOMEN IN THE COURSE SHE WAS ADVISED TO MAKE SURE HER VENTURE WAS ADEQUATELY FINANCED AND TO BE ASSERTIVE IN HER MARKETING APPROACH THROUGH COMPETITIVE BIDDING SHE LATER WON A 2 MILLION CONTRACT WITH THE DEPARTMENT OF THE NAVY AND SAYS SHE'S IN THE RUNNING FOR A 4 MILLION NAVY JOB MS HARRISON SAYS SHE ALSO GOT HELP WITH DEVELOPING MARKETING PLANS AND SETTING BUSINESS GOALS FROM ANOTHER SBA PROGRAM THE SENIOR CORPS OF RETIRED EXECUTIVES OR SCORE A VOLUNTEER MENTORING SERVICE THE SBA HELPS SMALL FIRMS WITH EVERYDAY CONCERNS SUCH AS COLLECTING PAYMENT FOR SERVICES RENDERED OFFICIALS AT IMAGING & SENSING TECHNOLOGY CORP IN HORSEHEADS NY HAD TROUBLE EARLY THIS YEAR GETTING PAID FOR SUBCONTRACTING WORK THE COMPANY HAD DONE SIX MONTHS EARLIER FOR A LARGE COMPANY THEY SOUGHT HELP FROM RAYMOND WERTS A COMMERCIALMARKET REPRESENTATIVE IN THE SBA'S SYRACUSE DISTRICT OFFICE MR WERTS AND HIS COLLEAGUES MONITOR FEDERAL CONTRACTORS' COMPLIANCE WITH RULES GOVERNING THE TREATMENT OF SUBCONTRACTORS THEY ALSO COUNSEL SMALL BUSINESSES ON WORKING WITH THE CONTRACTORS IMAGING & SENSING OFFICIALS SAY THEY RECEIVED THE PAYMENT FOUR DAYS AFTER MR WERTS CALLED THE BIGGER COMPANY ADVISE AND CONTRACT SBA PROCUREMENT REPRESENTATIVES ENCOURAGE FEDERAL CONTRACTING OFFICERS TO OPEN GOVERNMENT CONTRACTS TO BIDDING BY SMALL AND OTHER BUSINESSES INSTEAD OF AWARDING THEM TO THE SAME LARGE COMPANIES YEAR AFTER YEAR SOMETIMES CONTRACTING OFFICERS DON'T SEE THE POSSIBILITIES OUT THERE AT ONE TIME MAYBE THERE WAS ONLY ONE SOURCE AVAILABLE FOR A PRODUCT SAYS DAYTON WATKINS HEAD OF THE SBA'S PROCUREMENT OFFICE WHEN THE SBA PERSUADES AGENCIES TO ACCEPT BIDS A SMALL COMPANY WINS THE CONTRACT 85 OF THE TIME AN SBA OFFICIAL SAYS AND THE COMPETITION SAVES THE GOVERNMENT MONEY NUCLEAR RESEARCH CORP BASED IN DOVER DEL LAST YEAR WON A THREEYEAR CONTRACT VALUED AT 118 MILLION TO MAKE RADIACS DEVICES TO MEASURE NUCLEAR RADIATION ON THE BATTLEFIELD FOR THE ARMY COMMUNICATIONS ELECTRONICS COMMAND THAT WAS AFTER THE SBA PETITIONED ARMY OFFICIALS TO AWARD SOME OF THE BUSINESS TO SMALL FIRMS THE CONTRACT NOW ACCOUNTS FOR 15 OF NUCLEAR RESEARCH'S ANNUAL REVENUE OUT OF THE LABS CONGRESS LAST YEAR MORE THAN DOUBLED THE SIZE OF AN SBA PROGRAM THAT HELPS SMALL TECHNOLOGY FIRMS TRANSFORM LABORATORY RESEARCH INTO COMMERCIAL PRODUCTS UNDER THE SMALL BUSINESS INNOVATION RESEARCH GRANT PROGRAM SEVERAL FEDERAL AGENCIES MUST STEER PART OF THEIR RESEARCH AND DEVELOPMENT BUDGETS TO SMALL COMPANIES THE RATIONALE SMALL TECHNOLOGY BUSINESSES OFTEN ARE WORKING ON MORE INNOVATIVE IDEAS THAN BIG COMPANIES THE EXPANDED PROGRAM WILL PROVIDE AS MUCH AS 14 BILLION A YEAR IN GOVERNMENT RESEARCH FUNDS TO SMALL BUSINESS CONGRESS ALSO REVISED THE PROGRAM TO GIVE ADDED WEIGHT TO RESEARCH LIKELY TO RESULT IN COMMERCIAL PRODUCTS THE EMPHASIS ON COMMERCIALIZATION IS IMPORTANT BECAUSE IT'S BEEN MISSING TILL NOW SAYS MATTHEW RIZAI CHIEF EXECUTIVE OFFICER OF ENGINEERING ANIMATION INC AN AMES IOWA SOFTWARE DEVELOPER THAT HAS APPLIED FOR SEVERAL SBIR GRANTS THE CHANGE SHOULD PROD COMPANIES TO DEVELOP BUSINESS STRATEGIES FOR THEIR PRODUCTS HE SAYS ENGINEERING ANIMATION IS WORKING ON SOFTWARE THAT WOULD CREATE IN EFFECT A SIMULATOR FOR CERTAIN KINDS OF SURGERY LETTING DOCTORS AND MEDICAL STUDENTS SEE ON SCREEN THE IMPACT OF DIFFERENT SURGICAL OPTIONS ON SAY HOW THE KNEE MOVES ONE SBA PROGRAM IS SEEN BY SOME CRITICS AS A FORM OF CONGRESSIONAL PORK A TOTAL OF 750 SMALL BUSINESS DEVELOPMENT CENTERS AT COLLEGES AND UNIVERSITIES AROUND THE COUNTRY ARE INTENDED TO PROVIDE COUNSELING TO SMALL FIRMS BUT CONGRESS WROTE THE LAW SO THAT SBA OFFICIALS CAN'T REGULATE THE CENTERS WHICH ARE OPERATED BY THE UNIVERSITIES CRITICS SAY THAT MEANS THE CENTERS MAY BENEFIT THE COLLEGES MORE THAN SMALL BUSINESSES SUPPORTERS SAY THE PROGRAM HELPS SMALL BUSINESSES PERFORM BETTER AND THAT IN TURN PRODUCES MORE STATE AND FEDERAL TAX REVENUE THE PROGRAM COSTS THE SBA ABOUT 60 MILLION A YEAR AND MATCHING FUNDS COME FROM THE STATES AND PRIVATE SOURCES THE SBA'S OFFICE OF ADVOCACY WHILE NOT PROVIDING ANY SERVICES TO INDIVIDUAL ENTREPRENEURS LOBBIES CONGRESS TO TRY TO MAKE SURE NEW LAWS ARE SMALLBUSINESSFRIENDLY AND PRESSES FEDERAL DEPARTMENTS TO CUT RED TAPE IN RECENT YEARS THE OFFICE HELPED PERSUADE THE ENVIRONMENTAL PROTECTION AGENCY TO CUT SOME OF ITS PAPERWORK REQUIREMENTS FOR SMALL BUSINESS AND HELPED GET THE INTERNAL REVENUE SERVICE TO SIMPLIFY ITS RULES ON PAYROLLTAX DEPOSITS AN SBA PROCUREMENT PROGRAM TO SET ASIDE GOVERNMENT CONTRACTS FOR MINORITYOWNED COMPANIES HAS A HIGHER PROFILE THAN THE AGENCY MIGHT LIKE IN THE EARLY 1980S SOME WHITEOWNED COMPANIES TRIED TO TAKE ADVANTAGE OF THE SETASIDE PROGRAM BY ESTABLISHING FRONT COMPANIES WITH OFFICERS WHO WERE MEMBERS OF A MINORITY GROUP COVERED BY THE LAW BUT WHO HAD LITTLE FINANCIAL INTEREST IN OR CONTROL OF THE COMPANY PUBLICITY OVER THE ABUSES AND THE INVESTIGATIONS THAT FOLLOWED APPEAR TO HAVE CURTAILED THE PRACTICE MORE RECENTLY ANOTHER CONTROVERSY HAS DOGGED THE PROGRAM PARTICIPANTS LONG COMPLAINED THAT SETASIDE RULES MADE IT LIKELY THEY WOULD FAIL AFTER LEAVING THE PROGRAM BY BLOCKING THEM FROM KEEPING THE FEDERAL CONTRACTS THEY OBTAINED THROUGH IT MANY OF THEM HADN'T SOUGHT OTHER BUSINESS IN THE GENERAL MARKET A 1988 REVISION OF THE PROGRAM REQUIRES COMPANIES RECEIVING SETASIDES TO DO A CERTAIN PERCENTAGE OF THEIR BUSINESS IN THE GENERAL MARKETPLACE TO AVOID BECOMING DEPENDENT ON THE PROGRAM THE SBA IS EXPECTED TO MAKE MORE CHANGES THIS FALL NEW RULES MAY LET THE COMPANIES KEEP SOME OF THEIR GOVERNMENT CONTRACTS AFTER LEAVING THE PROGRAM MS SADDLER IS A STAFF REPORTER IN THE WALL STREET JOURNAL'S WASHINGTON BUREAU 9310150180 931015 BUSINESS BRIEF WHIRLPOOL 3RDQUARTER NET ROSE 27 ON STRONG CONTRIBUTION FROM EUROPE BENTON HARBOR MICH WHIRLPOOL CORP CITING A PARTICULARLY STRONG CONTRIBUTION FROM ITS EUROPEAN OPERATION SAID THIRDQUARTER EARNINGS CLIMBED 27 ON SALES THAT WERE ESSENTIALLY FLAT THE BIG APPLIANCE MAKER REPORTED NET INCOME ROSE TO 70 MILLION OR 96 CENTS A SHARE FROM THE YEAREARLIER 55 MILLION OR 78 CENTS A SHARE SALES WERE 187 BILLION COMPARED WITH 186 BILLION THE LATEST RESULTS MARKED THE BEST THIRD QUARTER EVER FOR SALES AND EARNINGS THE COMPANY SAID IN EUROPE WE CONTINUE TO DEFY WHAT AT BEST IS A SLUGGISH ENVIRONMENT IN WHICH TO SELL MAJOR HOME APPLIANCES SAID DAVID R WHITWAM THE COMPANY'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER AND THE PRINCIPAL ARCHITECT OF THE COMPANY'S YEARSLONG INTERNATIONAL EXPANSION EFFORT INCREASED MARKET SHARE ALLOWED UNIT SHIPMENTS FOR WHIRLPOOL EUROPE TO SHOW AN INCREASE THE COMPANY SAID DESPITE AN ESTIMATED SHIPMENT DOWNTURN FOR THE OVERALL EUROPEAN INDUSTRY OF 1 OR 2 THROUGH THE FIRST NINE MONTHS OF THIS YEAR OPERATING PROFIT AND MARGINS INCREASED SOLIDLY FOR THE UNIT ALTHOUGH REVENUE SHOWED A DECLINE BECAUSE OF CURRENCY CHANGES THE LATEST PERIOD'S RESULTS WHICH TOPPED WALL STREET'S EXPECTATIONS REPRESENT ONLY THE MOST RECENT VALIDATION OF OUR STRATEGY TO DEVELOP WHIRLPOOL AS AN INTEGRATED GLOBAL INDUSTRY LEADER WHIRLPOOL'S NORTH AMERICAN APPLIANCE GROUP SALES AND OPERATING INCOME ROSE ALTHOUGH EARNINGS WERE DEPRESSED IN PART BY A CHARGE TO COVER COSTS OF ENDING DISTRIBUTOR AGREEMENTS AS WELL AS THE EFFECT OF A WEAKER CANADIAN DOLLAR WHIRLPOOL'S EARNINGS WERE ALSO HELPED IN THE LATEST QUARTER BY SIGNIFICANTLY LOWER INTEREST OUTLAYS AND BY A DECLINE IN THE COMPANY'S EFFECTIVE TAX RATE WHILE PRETAX OPERATING EARNINGS ROSE TO 111 MILLION FROM 97 MILLION INCOME TAXES HELD STEADY AT 41 MILLION EARNINGS FROM THE COMPANY'S FINANCING SUBSIDIARY SAW A 60 DECLINE TO 2 MILLION THE WHIRLPOOL FINANCIAL CORP UNIT THIS YEAR BEGAN THE PROCESS OF PHASING OUT ITS PRESENCE IN AEROSPACE AND CERTAIN LEVERAGED COMMERCIALLENDING ACTIVITIES THE COMPANY'S BRAZILIAN AFFILIATES WHICH HAVE AT TIMES IN THE RECENT PAST BEEN PLAGUED BY THAT COUNTRY'S ECONOMIC TURMOIL CONTRIBUTED EARNINGS OF FIVE CENTS A SHARE COMPARED WITH LESS THAN ONE CENT A YEAR EARLIER IN NEW YORK STOCK EXCHANGE TRADING YESTERDAY WHIRLPOOL SHARES ROSE 375 CENTS TO 61125 A SHARE 9310150178 931015 RR DONNELLEY ACQUISITION CHICAGO RR DONNELLEY & SONS CO PURCHASED WESTERN COMPUTER PRESS A COMPUTER DOCUMENTATION PRINTER IN TIGARD ORE TERMS WEREN'T DISCLOSED RR DONNELLEY SAID IT WILL OPERATE WESTERN COMPUTER AS A SATELLITE OF ITS RR DONNELLEY NORWEST INC SUBSIDIARY'S COMPUTER DOCUMENTATION FACILITY IN PORTLAND WESTERN COMPUTER EMPLOYS 105 PEOPLE WHO PRINT AND BIND COMPUTER MANUALS FROM TWO ADJACENT FACILITIES TOTALING NEARLY 140000 SQUARE FEET 9310150177 931015 NEW MILFORD BANK MERGER NEW MILFORD CONN NEW MILFORD BANK & TRUST CO AND CANDLEWOOD BANK & TRUST CO SAID THEY WILL MERGE TO FORM A NEW BANK TO BE NAMED NEW MILFORD BANK & TRUST CO THE NEW BANK WILL HAVE EIGHT OFFICES SERVING WESTERN CONNECTICUT AND ASSETS OF ABOUT 250 MILLION THE COMPANIES SAID ADDING THAT CANDLEWOOD SHAREHOLDERS WILL RECEIVE 956 A SHARE SUBJECT TO CERTAIN ADJUSTMENTS CANDLEWOOD CURRENTLY HAS ABOUT 575000 SHARES OUTSTANDING A SPOKESMAN SAID 9310150176 931015 DUTCH JOB VACANCIES DROP AMSTERDAM THE NUMBER OF JOB VACANCIES IN THE DUTCH PRIVATE SECTOR FELL 64 BY THE END OF JUNE FROM THREE MONTHS EARLIER AND THE NUMBER WAS OFF 43 FROM A YEAR EARLIER THE GOVERNMENT SAID THE HAGUEBASED CENTRAL BUREAU FOR STATISTICS SAID THERE WERE 44000 JOB VACANCIES AS OF JUNE 30 DOWN FROM 47000 AT THE END OF MARCH AND 77000 IN JUNE 1992 THE TOTAL OF JOB VACANCIES IN JUNE WAS THE LOWEST SINCE THE GOVERNMENT BEGAN PUBLISHING SUCH FIGURES ON A QUARTERLY BASIS IN SEPTEMBER 1988 IT IS MUCH BELOW THE HIGH OF 134000 IN MARCH 1990 9310150175 931015 CENTURA COMPLETES PURCHASE ROCKY MOUNT NC CENTURA BANKS INC COMPLETED ITS ACQUISITION OF FIRST SAVINGS BANK OF FOREST CITY FIRST SAVINGS BANK IS A MUTUALLY OWNED SAVINGS BANK WITH 67 MILLION IN ASSETS THE COMPANY SAID THAT AS PART OF THE MERGER FIRST SAVINGS WAS CONVERTED TO STOCK OWNERSHIP AND SIMULTANEOUSLY COMBINED WITH CENTURA IT SAID CENTURA ISSUED COMMON STOCK VALUED AT ABOUT 9 MILLION WHEN FIRST SAVINGS WAS CONVERTED TO STOCK OWNERSHIP THE FIRST SAVINGS BRANCH IN FOREST CITY WILL REOPEN AS A CENTURA OFFICE TOMORROW THE COMPANY SAID 9310150174 931015 WHO'S NEWS AMERICAN INTERNATIONAL GROUP INC AMERICAN INTERNATIONAL GROUP INC NEW YORK ROBERT E LEWIS 42 YEARS OLD WAS NAMED VICE PRESIDENT AND CHIEF CREDIT OFFICER A NEW POSITION AT THIS INSURANCE COMPANY AND UNDERWRITER OF COMMERCIAL AND INDUSTRIAL INSURANCE MR LEWIS WAS FORMERLY ASSISTANT GENERAL MANAGER FOR NORTH AMERICA CHIEF CREDIT OFFICER AND SENIOR EXECUTIVE IN CHARGE OF RISK AND EXPOSURE MANAGEMENT AT ING BANK IN NEW YORK A BANKING UNIT OF INTERNATIONALE NEDERLANDEN GROEP A DUTCH INSURANCE CONCERN 9310150173 931015 WHO'S NEWS NATIONAL MEDICAL ENTERPRISES INC NATIONAL MEDICAL ENTERPRISES INC SANTA MONICA CALIF CHRISTI R SULZBACH WAS PROMOTED TO THE NEW POST OF SENIOR VICE PRESIDENT PUBLIC AFFAIRS OF THIS HOSPITAL COMPANY MS SULZBACH 38 YEARS OLD IS AN ATTORNEY AND FORMER VICE PRESIDENT WHO CONTINUES HER DUTIES AS ASSOCIATE GENERAL COUNSEL IN HER NEW POST SHE ALSO OVERSEES CORPORATE COMMUNICATIONS GOVERNMENT RELATIONS AND INVESTOR RELATIONS SHE REPORTS DIRECTLY TO JEFFREY C BARBAKOW CHAIRMAN AND CHIEF EXECUTIVE OFFICER THE COMPANY SAID 9310150172 931015 NATIONAL BANK OF CANADA CALL MONTREAL NATIONAL BANK OF CANADA SAID IT WILL REDEEM 974 MILLION CANADIAN DOLLARS US733 MILLION OF FLOATINGRATE CONVERTIBLE REDEEMABLE DEBENTURES SERIES 5 DUE 2083 IN EXCHANGE FOR ABOUT NINE MILLION COMMON SHARES OF THE BANK THE REDEMPTION WILL TAKE PLACE ON OR ABOUT NOV 1 SUBJECT TO REGULATORY APPROVALS THE BANK HAD 148423006 SHARES OUTSTANDING AT AUG 31 9310150171 931015 REVIEW & OUTLOOK EDITORIAL CHOICE POLITICS THINK YOU MIGHT WANT TO GO INTO POLITICS GET INVOLVED WITH THE SCHOOLCHOICE MOVEMENT THERE HASN'T BEEN ANOTHER ISSUE IN A LONG TIME THAT CROSSES SO MANY LINES IN THE COUNTRY'S POLITICAL LIFE THE HIGHEST VOLTAGE AT THE MOMENT IS BEING FELT THROUGHOUT CALIFORNIA CALIFORNIA'S ENTIRE POLITICAL ESTABLISHMENT IS OPPOSING PROPOSITION 174 THE SCHOOLVOUCHER INITIATIVE ON NEXT MONTH'S BALLOT SO BY DEFINITION IT'S A SERIOUS THREAT TO THE STATUS QUO PRESIDENT CLINTON WHOSE OWN EDUCATION WAS ENHANCED BY SEVERAL YEARS IN CATHOLIC SCHOOLS ATTACKED THE VOUCHER INITIATIVE WHEN HE SWEPT THROUGH THE STATE RECENTLY GOP GOVERNOR PETE WILSON HAS JOINED MOST LEGISLATORS AGAINST IT CITING COST CONCERNS NEVER MIND THAT PRIVATE SCHOOLS TYPICALLY DELIVER BETTER RESULTS FOR LESS THAN HALF THE MONEY SPENT BY PUBLIC SCHOOLS THE INITIATIVE WOULD GIVE PARENTS A GRANT OF 2600 A YEAR TO SEND THEIR CHILDREN TO ANY PUBLIC OR PRIVATE SCHOOL BUT AFTER A 6 MILLION BARRAGE OF TV ADS AGAINST VOUCHERS IT'S BEHIND IN THE POLLS THE CALIFORNIA TEACHERS ASSOCIATION WILL END UP SPENDING DOUBLE THAT AMOUNT TO DEFEAT PROP 174 BECAUSE THE UNION REPRESENTS 90 OF CALIFORNIA'S 250000 PUBLIC SCHOOL TEACHERS CTA'S WAR CHEST IS FLUSH WITH CASH EACH OF ITS MEMBERS WAS ASSESSED A 63 DUES SURCHARGE TO PAY FOR ANTI174 ADS OFFICEHOLDERS WHO WANT TO ENDORSE VOUCHERS HAVE BEEN WARNED THAT IF THEY DO THE FULL ELECTORAL FIREPOWER OF THE CTA WILL BE AIMED AT THEM SO THEY DUCK CALIFORNIANS SHOULD BE RIPE FOR RADICAL EDUCATION REFORM LAST MONTH THE STATE'S FOURTH GRADERS SCORED NEXT TO THE BOTTOM ON A NATIONAL READING TEST ONLY MISSISSIPPI STUDENTS TESTED WORSE A NEW PRIVATE POLL FOR A UNIVERSITY OF CALIFORNIA AT BERKELEY THINK TANK FOUND THAT 61 OF VOTERS WANT A MAJOR OVERHAUL OF PUBLIC SCHOOLS A TOTAL OF 56 SUPPORTED THE CONCEPT OF VOUCHERS FOR BOTH PUBLIC AND PRIVATE SCHOOLS BUT ONLY SOME 40 OF VOTERS CURRENTLY BACK PROP 174 WHY THE DIFFERENCE AT A RECENT CONFERENCE ON SCHOOL CHOICE SPONSORED BY STANFORD'S HOOVER INSTITUTION OBSERVERS SUGGESTED TWO ANSWERS THE FIRST IS SIMPLY THAT WHEN IN DOUBT MOST VOTERS WILL REJECT A COMPLICATED PROPOSAL THAT AFFECTS AN AREA AS VITAL AS THE EDUCATION OF CHILDREN OR FOR INSTANCE RECREATING THE US HEALTH CARE SYSTEM HOWARD JARVIS HAD TO FINETUNE HIS PROPOSAL TO CUT PROPERTY TAXES FOUR TIMES BEFORE HE HIT POLITICAL PAY DIRT WITH PROPOSITION 13 ALSO WHILE POLLS SHOW THAT MINORITY VOTERS FAVOR CHOICE BECAUSE OF THE SCANDALOUS FAILURE OF INNERCITY SCHOOLS MOST VOTERS IN AN OFFYEAR ELECTION LIVE IN THE SUBURBS WHERE PEOPLE WORKED HARD TO BUY INTO TOWNS WITH PRESUMABLY RESPECTABLE SCHOOLS BEYOND THIS SUBURBANITES ARE BEING GIVEN TO BELIEVE THAT CHOICE WILL MEAN AN INFLUX OF INNERCITY CHILDREN INTO THEIR SCHOOLS AND THIS WILL ONLY IMPORT TO THE SUBURBS THE PROBLEMS OF GHETTO AND BARRIO EDUCATION THE EVIDENCE SUGGESTS THAT IF VOUCHERS WERE AVAILABLE ALTERNATIVE PRIVATE AND CHARTER SCHOOLS WOULD SPRING UP CLOSER TO HOME AND THAT MOST INNERCITY PARENTS WHO LEFT PUBLIC SCHOOLS WOULD WANT THEIR CHILDREN SCHOOLED CLOSER TO HOME THE HARD REALITY IS THAT THE PUBLIC SCHOOL SYSTEM IS SLIPPING FURTHER DOWNWARD LAST MONTH THE LOS ANGELES TIMES PAID A VISIT TO SUBURBAN NORTHRIDGE MIDDLE SCHOOL WHERE IT FOUND CLASSES IN BASEBALLCARD COLLECTING JIGSAW PUZZLES AND CROCHETING A NORTHRIDGE TEACHER SAID THE MOST IMPORTANT JOB IN JUNIOR HIGH IS NOT SUBJECT MATTER BUT MORALE WHATEVER THE STATE OF MORALE NORTHRIDGE'S SCORES IN READING AND MATH HAVE DROPPED BY NEARLY 50 NO MATTER WHAT THE VOTE TOTALS ON PROPOSITION 174 NONE OF THIS IS GOING AWAY PUTTING THE BEST FACE ON IT THE PUBLIC EDUCATION SYSTEM OPERATES FROM THE ASSUMPTION THAT WELLINTENTIONED MEN AND WOMEN CAN COMBINE TO EFFECTIVELY PRODUCE A PUBLIC GOODEDUCATION MAYBE ONCE BUT THAT CONSENSUS HAS BEEN SHATTERED BY LOADING UP THESE SCHOOLS WITH CLASHING POLITICAL GOALS TOO MANY ADMINISTRATORS AND A FACTORYFLOOR UNION MENTALITY AT HUGE TAXPAYER COST NOW AN AGGRESSIVE INSURGENCY IS SAYING MAKE THESE PEOPLE COMPETE TO PROVE THEIR WORTH COMPETITION MEANS SCHOOL CHOICE 9310150168 931015 SMALL BUSINESS A SPECIAL REPORT WARMUPS DON'T BELIEVE IT I CAN DO IT ON A SHOESTRING AND OTHER MYTHS ABOUT STARTING A BUSINESS BY DAVE KANSAS THERE ARE ALL KINDS OF REASONS TO SCRATCH THAT SMALLBUSINESS ITCH FULFILLING A LIFELONG DREAM MAKING UP FOR A LOST JOB HOPING FOR A FRESH START OR JUST ACTING ON A WHIM SOME IDEAS ABOUT STARTUPS MAY SOUND REASONABLE TO THE WOULDBE ENTREPRENEUR BUT DON'T KID YOURSELF A LITTLE RATIONALIZING CAN BE A DANGEROUS THING TO GAIN SOME PERSPECTIVE YOU MIGHT WANT TO COMPARE YOUR MOTIVES AND PRECONCEPTIONS AGAINST THIS CHECKLIST BEFORE HANGING OUT YOUR SHINGLE I'M SMART I CAN JUST WING IT CORNER A GROUP OF SMALLBUSINESS ADVISERS AND THE ONE THING THEY'LL ALL AGREE ON IS NO PLAN NO WAY PEOPLE NEED TO HAVE A BUSINESS PLAN TO MAP OUT WHAT THEY ARE GOING TO DO SAYS PETER GEORGE DIRECTOR OF THE SMALL BUSINESS DEVELOPMENT CENTER AT THE STATE UNIVERSITY OF NEW YORK AT ALBANY WITHOUT A PLAN SMENT OF A NEW BUSINESS'S NEEDS IT'S UNLIKELY THAT SOMEONE CAN SUCCEED AT STARTING A NEW BUSINESS DRAWING UP A PLAN HELPS THE ENTREPRENEUR ANSWER THE MOST CRUCIAL QUESTION DOES ANYBODY NEED WHAT I HAVE TO OFFER SOMETIMES AN ENTREPRENEUR'S PERCEPTION ISN'T IN STEP WITH REALITY SAYS JIM GABE OF GABE & GABE BUSINESS CONSULTANTS IN NEW YORK HE RECALLS A GROUP OF BUSINESSMEN WHO THOUGHT THEIR CORPORATE EXPERIENCE ALONE QUALIFIED THEM TO START A DESKTOPPUBLISHING VENTURE THOUGH THEY DIDN'T UNDERSTAND THE SOPHISTICATION OF THAT BUSINESS THEY WOUND UP INVESTING IN OUTOFDATE EQUIPMENT THAT PLACED THEM AT A FUNDAMENTAL DISADVANTAGE TO THEIR COMPETITORS DEVELOPING A PLAN ALSO ALLOWS THE BUDDING ENTREPRENEUR TO UNDERSTAND HOW MUCH EFFORT MAY BE INVOLVED IN OPENING UP SHOP ONE FELLOW CAME TO ME AND SAID HE WANTED TO QUIT HIS LUCRATIVE JOB AT A LARGE COMPANY AND OPEN HIS OWN CARPETCLEANING BUSINESS SAYS MR GEORGE HE THOUGHT STARTING HIS OWN BUSINESS WOULD ALLOW HIM MORE TIME TO GOLF WE BUILT A BUSINESS PLAN AND I SHOWED HIM THAT 101 CARPETCLEANING BUSINESSES ALREADY WERE IN OPERATION CARVING OUT A PIECE OF THAT MARKET WOULD HAVE TAKEN A LOT OF WORK SO HE DECIDED TO STAY AT HIS JOB I CAN DO IT ON A SHOESTRING LACK OF CAPITAL CAN KILL SMALLBUSINESS STARTUPS AND NOBODY EVER HAS ENOUGH MONEY BUT FUNDING DOESN'T HAVE TO BE A PROBLEM STARTUPS CAN QUALIFY FOR LOANS GUARANTEED BY THE SMALL BUSINESS ADMINISTRATION SOME ADVISERS RECOMMEND MORTGAGING PROPERTY TO GET SEED MONEY MORE AMBITIOUS BUSINESS PLANNERS CAN ALSO TRY TO DEVELOP A POOL OF INVESTORS RELYING ON MODEST PERSONAL SAVINGS IS RISKIER A LITTLE BIT OF CASH IS A REALLY DANGEROUS THING SAYS THOMAS DANDRIDGE PROFESSOR OF BUSINESS AT THE STATE UNIVERSITY OF NEW YORK AT ALBANY HAVING ONLY A LITTLE BIT IS ALMOST GOING TO DOOM YOU PEOPLE FORGET THAT MOST BUSINESSES REQUIRE A GREAT DEAL OF SPENDING BEFORE THEY CAN BEGIN TO DEVELOP CASH FLOW STILL WOULDBE ENTREPRENEURS SHOULD KEEP THEIR FINANCIAL PICTURE IN PERSPECTIVE YOU DON'T NECESSARILY NEED A GREAT DEAL OF CAPITAL SAYS MR GABE IT'S MORE IMPORTANT TO FIND A NICHE THAT WILL WORK FOR YOUR BUSINESS ALL THE MONEY IN THE WORLD CAN'T SELL A PRODUCT NOBODY WANTS NO SWEAT I HAVE A GREAT IDEA A GREAT IDEA BY ITSELF MEANS ABSOLUTELY NOTHING BUSINESS CONSULTANTS SAY MORE THAN IDEAS I'M LOOKING FOR PEOPLE WITH PLUCK AND STUPIDITY SAYS MR GABE THEY NEED A LITTLE STUPIDITY IN ORDER TO WORK HARD ENOUGH TO MAKE IT WORK WILLIAM E DUNN ASSOCIATE DIRECTOR OF THE SOL C SNIDER ENTREPRENEURIAL CENTER AT THE UNIVERSITY OF PENNSYLVANIA'S WHARTON SCHOOL CONCURS I'D SAY ABOUT 5 OF THE SUCCESS EQUATION IS HAVING A GOOD IDEA HE SAYS OF COURSE HAVING A BAD IDEA MAY BE DIFFICULT TO OVERCOME NO MATTER HOW PLUCKY OR STUPID YOU ARE BUT WHAT IS A BAD IDEA BOB BERNIER DIRECTOR OF THE ASSOCIATION OF SMALL BUSINESS DEVELOPMENT CENTERS IN OMAHA NEB REMEMBERS A NEW YORKER CARTOON THAT MOCKED THE IDEA OF A STORE SELLING BOOKS AND POTS AFTER HE SAW IT A STORE OPENED JUST OUTSIDE OF OMAHA SELLING BOOKS AND POTS HE SAYS THE LONGER I'M INVOLVED IN THIS THE LESS I'M SURE I KNOW WHAT A GOOD IDEA IS STILL SOME IDEAS SEEM DOOMED FROM THE START ONE PROFESSOR RECALLS A STUDENT WHO DESIGNED A PRODUCT CALLED THE LOVE GLOVE THE THREEGLOVE PACKAGE INCLUDED A SHARED TWOHANDED GLOVE MANUFACTURING COMPLICATIONS SCUTTLED THE PLAN I'VE GOT NOTHING BETTER TO DO THIS RATIONALIZATION IS A RECIPE FOR DISASTER CONSULTANTS SAY THE ABSOLUTE WORST POSSIBLE TIME TO START A BUSINESS IS WHEN YOU HAVE NOTHING BETTER TO DO DR DUNN SAYS THE BEST TIME TO START IS WHEN YOU'RE ABSOLUTELY READY A BETTER TIME TO START IS WHEN YOUR CUSTOMERS ARE READY SOME PEOPLE THINK STARTING THEIR OWN BUSINESS IS AN EASY WAY TO MAKE A QUICK BUCK PROF DANDRIDGE SAYS IT ALMOST NEVER IS IF YOU BELIEVE STARTING A BUSINESS IS SOMETHING JUST TO DO BECAUSE YOU'VE BEEN LAID OFF THAT LEVEL OF COMMITMENT WOULDN'T MAKE IT WORK HE ADDS MAYBE STARTING A BUSINESS WILL HELP OUR MARRIAGE DON'T BET ON IT WHILE MOST BUSINESS CONSULTANTS DON'T WANT TO DEAL TOO MUCH WITH PERSONAL ISSUES THEY SAY THE BURDENS OF STARTING A SMALL BUSINESS CAN AMPLIFY EXISTING MARITAL STRAINS A WEAKER MARRIAGE OR PARTNERSHIP CAN BE AND OFTEN IS TORN APART WHEN SOMEONE IS WORKING HARD AT STARTING SOMETHING NEW PROF DANDRIDGE SAYS IT'S NOT REALLY SOME FUN ADVENTURE STARTING A BUSINESS USUALLY CREATES REAL STRESS OUTSIDE OF MARRIAGE CONSULTANTS OFTEN DISCOURAGE PEOPLE WHO APPEAR UNSTABLE OR PERSONALLY DISTRESSED FROM STARTING A BUSINESS IF YOU'RE UNSETTLED PERSONALLY IT CAN BE DISTRACTING MR GABE SAYS IF YOU'RE EMOTIONALLY UNSTABLE AT WORK PEOPLE WILL SEE THAT AND RUN AWAY FROM YOU WITH ALL MY EXPERIENCE STARTING A BUSINESS SHOULD BE EASIER NOT SO ADVISERS SAY THE PREDOMINANT ADVICE IS TO START YOUNG MOST PEOPLE SEE THE WINDOW OF OPPORTUNITY COMING SOMETIME RIGHT AFTER COLLEGE SAYS DR DUNN AT THAT TIME IT'S LESS LIKELY THAT YOU'LL HAVE A FAMILY A MORTGAGE CAR PAYMENTS OR OTHER EXPENSIVE RESPONSIBILITIES MR BERNIER ADDS WHEN THEY'RE JUST OUT OF COLLEGE PEOPLE HAVE FEWER FEARS AND ATTACK THE BUSINESS LIKE THERE'S NOTHING TO LOSE IT'S HARDER TO HAVE THAT ATTITUDE WITH KIDS IN SCHOOL SEVERAL CONSULTANTS HOWEVER SAY THAT BECAUSE OF CORPORATE LAYOFFS MORE PEOPLE NOW ARE LOOKING TO START IN MIDDLE AGE MR BERNIER SAYS OLDER ENTREPRENEURS HAVE A BETTER SHOT AT SUCCESS IF THEY OPEN A BUSINESS RELATED IN SOME WAY TO WHAT THEY HAD BEEN DOING MANY OF THEM BECOME CONSULTANTS HE SAYS A BAD ECONOMY WILL MEAN FEWER COMPETITORS BUT IT WON'T NECESSARILY MEAN LESS RESISTANCE FROM THOSE THAT REMAIN BUSINESSES THAT HAVE SURVIVED IN A WEAK ECONOMY ARE OFTEN RUGGED COMPETITORS LIKELY TO GREET NEWCOMERS HARSHLY CONSULTANTS WARN THAT STARTING A BUSINESS IN A SLUGGISH ENVIRONMENT ALSO MAKES IT HARDER TO GET MONEY FROM LENDERS AND TO BUILD MARKET SHARE AMONG OTHER CHALLENGES ONE OF THE TOUGHEST THINGS ABOUT STARTING IN A DOWNTURN IS FINDING CUSTOMERS WITH ANY MONEY PROF DANDRIDGE SAYS SOME CONTRARIANS HOWEVER SAY A DOWNTURN IS THE RIGHT TIME TO START A LOT OF PEOPLE HAVE LEFT THE FIELD MR GABE SAYS IF YOU CAN GET IN WHEN THINGS ARE ON THE DOWN SIDE YOU CAN RISE WITH THE TIDE OF AN IMPROVING ECONOMY ONE CONSENSUS IF YOU WANT TO BEGIN A RETAILING OPERATION START IN THE FALL SO THE BUSINESS CAN CAPITALIZE ON THE CHRISTMAS SHOPPING SEASON I'M MAD AS HELL AND I'M NOT GOING TO TAKE IT ANYMORE THIS CAN BE A GOOD RATIONALE IF YOU'RE MAD FOR THE RIGHT REASONS BUT UNFOCUSED IRE GENERALLY WON'T HELP YOU SUCCEED ADVISERS SAY A GOOD TIME TO START A BUSINESS IS WHEN YOU'RE SO DAMNED MAD THAT YOU ARE ABSOLUTELY CONVINCED THAT YOU CAN DO SOMETHING BETTER FASTER AND CHEAPER THAN THOSE IDIOTS DR DUNN SAYS A CASE IN POINT W L GORE A CHEMIST AT DUPONT CO THOUGHT THE COMPANY WAS FAILING TO EXPLOIT THE POSSIBILITIES HE SAW IN TEFLON SO HE QUIT STARTED HIS OWN VENTURE WL GORE & ASSOCIATES AND BUILT GORETEX A TEFLONBASED WATERPROOF FABRIC INTO A 1 BILLIONAYEAR BUSINESS DR DUNN AND OTHER CONSULTANTS SAY ANGER IS DRIVING THE GROWTH IN STARTUPS LED BY WOMEN WHICH NOW ACCOUNT FOR MORE THAN HALF OF NEW BUSINESSES WOMEN BREAK THROUGH A GLASS CEILING ONLY TO DISCOVER THAT THEY'VE FOUND ANOTHER ONE SAYS DR DUNN THEY SAY THE HELL WITH THIS AND DECIDE TO GO OUT AND DO IT THEMSELVES IF I CAN'T THINK OF ANYTHING ELSE I'LL OPEN A BAR FOR SOME REASON MANY OF THOSE WANTING TO START A SMALL BUSINESS THINK OPENING A BAR OR RESTAURANT WILL BE EASY I JUST CAN'T CONCEIVE OF IT BECAUSE IT'S THE LAST THING I'D RECOMMEND SOMEBODY GO INTO MR BERNIER SAYS I GUESS PEOPLE LIKE THE IDEA BECAUSE EVERYONE LIKES TO EAT WHICH IS THE WORST REASON TO START A BUSINESS MANY RESTAURANT AND BAR FAILURES STEM FROM A PROBLEM COMMON IN FIZZLED STARTUPS LACK OF APPLICABLE EXPERIENCE WITHOUT PRACTICAL EXPERIENCE FINDING NOT TO MENTION PLEASING CUSTOMERS MAY BE DIFFICULT YOU'VE GOT TO KNOW THE CUSTOMERS KNOW HOW TO SOLVE THEIR PROBLEMS DR DUNN SAYS AND YOU HAVE TO BE ABLE TO DO IT BETTER AND CHEAPER THAN BEFORE TO GET THEIR BUSINESS IF YOU DON'T HAVE ANY EXPERIENCE IN THE AREA YOU WANT TO ENTER IT'S GOING TO BE DIFFICULT TO SOLVE YOUR CLIENT'S PROBLEMS AND GROW ALONG WITH THE CLIENT MR KANSAS IS A STAFF REPORTER IN THE WALL STREET JOURNAL'S NEW YORK BUREAU 9310150167 931015 YAOHAN ENVISIONS RETAIL EMPIRE IN CHINA BUT SOME WONDER IF DREAM IS BIGGER THAN LIFE BY SALLY D GOLL STAFF REPORTER OF THE WALL STREET JOURNAL HONG KONG EVEN BY THE STANDARDS OF CHINA A MARKET THAT INSPIRES HYPERBOLE IN THE MOST CAUTIOUS BUSINESSMEN YAOHAN INTERNATIONAL GROUP IS PROMOTING A GRAND VISION KAZUO WADA CHAIRMAN OF THE HONG KONGBASED RETAILER SAYS THAT BY THE YEAR 2010 HE INTENDS TO OPEN 1000 SUPERMARKETS 3000 FASTFOOD RESTAURANTS DOZENS OF BAKERIES RESTAURANTS AND FACTORIES AND AT LEAST 10 DEPARTMENT STORES THE PLANS INCLUDE A SHOPPING COMPLEX IN SHANGHAI CHINA THAT MR WADA PROMISES WILL BE THE BIGGEST IN ASIA TO BE SURE HE HASN'T FORGOTTEN THE REST OF THE WORLD YAOHAN LAST MONTH OPENED ITS FIRST BRITISH AND CANADIAN DEPARTMENT STORES WHICH MR WADA SAYS WILL SERVE AS BEACHHEADS FOR FUTURE EXPANSION IN EUROPE AND NORTH AMERICA YAOHAN PLANS TO OPEN AT LEAST 10 MORE STORES IN CANADA AND THE US IN THE NEXT FOUR YEARS BRINGING ITS NUMBER OF STORES IN NORTH AMERICA TO 20 BUT IT IS CHINA NOT THE WEST ON WHICH MR WADA HAS FIXED HIS SIGHTS WE WANT TO EXPAND GLOBALLY HE SAYS BUT OUR FUTURE IS IN CHINA BY THE YEAR 2010 HE ADDS CHINA SHOULD ACCOUNT FOR HALF THE GROUP'S SALES UP FROM LESS THAN 5 CURRENTLY TO HELP PAY OFF BANK LOANS AND FINANCE EXPANSION THE GROUP'S HOLDING COMPANY FOR THE GREATER CHINA REGION YAOHAN INTERNATIONAL HOLDINGS LTD OR YIH ANNOUNCED WEDNESDAY THAT IT PLANS TO RAISE HK634 MILLION US82 MILLION THROUGH THE SALE OF 2472 MILLION SHARES AS PART OF A LISTING ON THE STOCK EXCHANGE OF HONG KONG YIH FORECAST THAT ITS PROFIT AFTER TAX AND MINORITY INTERESTS BUT BEFORE EXTRAORDINARY ITEMS WILL BE AT LEAST HK265 MILLION IN THE YEAR ENDING MARCH 31 UP 77 FROM HK1497 MILLION A YEAR EARLIER THE OFFERING WHICH CLOSES OCT 19 WILL REPRESENT 25 OF YIH'S ENLARGED SHARE CAPITAL AT THE OFFERING PRICE OF HK268 US 35 CENTS A SHARE THE COMPANY'S TOTAL MARKET VALUE IS ABOUT HK265 BILLION US343 MILLION BUT MR WADA WILL NEED A LOT MORE THAN CAPITAL IF HIS CHINA DREAM IS TO BECOME A REALITY THUS FAR APART FROM A HANDFUL OF STORE OPENINGS AND THE ACQUISITION OF A FOODPROCESSING PLANT ANALYSTS AND INDUSTRY WATCHERS SAY THEY HAVE SEEN LITTLE THAT WOULD EXPLAIN JUST HOW MR WADA WILL MEET HIS AMBITIOUS TARGETS IT'S VERY HARD TO SEE HOW THEY'RE GOING TO DO IT SAYS SAMANTHA HO AN ANALYST WITH JARDINE FLEMING SECURITIES IN HONG KONG SAYS JOHNSON CHEUNG AN ANALYST WITH WARDLEY JAMES CAPEL FAR EAST LTD IN HONG KONG THEY ARE VERY HAPPY TO TALK ABOUT GRAND STRATEGY BUT THEY ARE VERY RELUCTANT TO PROVIDE HARD INFORMATION STILL YAOHAN HAS HAD SOME IMPORTANT VICTORIES IN CHINA MR WADA SAYS A JOINT VENTURE ESTABLISHED IN 1992 WITH SHANGHAI NO 1 DEPARTMENT STORE WAS THE FIRST FOREIGN RETAIL VENTURE APPROVED BY THE CHINESE GOVERNMENT FOLLOWING ITS DECISION THAT YEAR TO ALLOW FOREIGN PARTICIPATION IN THAT SECTOR YAOHAN ALSO RECEIVED TAX CONCESSIONS AND A LICENSE ALLOWING THE COMPANY TO IMPORT A PERCENTAGE OF THE MERCHANDISE IT SELLS WITHOUT HAVING TO PAY FULL IMPORT DUTIES IN ADDITION YAOHAN HAS TIES WITH TWO CHINESE ENTERPRISES WITH STRONG POLITICAL CONNECTIONS AND COMMERCIAL SAVVY CHINA INTERNATIONAL TRUST & INVESTMENT CORP OR CITIC THE CENTRAL GOVERNMENT'S MAIN OVERSEAS INVESTMENT ARM AND CHINA VENTURETECH INVESTMENT CO OR CVIC WHICH HELPS FINANCE CHINESE BUSINESSES CVIC IS A PARTNER WITH YAOHAN IN ITS BEIJING DEPARTMENT STORE AS WELL AS IN YAOHAN MOS FOOD CVIC INTERNATIONAL CO A JOINT VENTURE BETWEEN YAOHAN CVIC AND JAPAN'S MOS FOOD SERVICES INC YAOHAN MOS FOOD CVIC INTERNATIONAL IS TO BE THE MAIN VEHICLE FOR MR WADA'S PLANNED CHAIN OF FASTFOOD RESTAURANTS SO FAR IN HONG KONG MR WADA'S VISION HAS PROVED PRESCIENT YAOHAN WAS ONE OF THE FIRST INTERNATIONAL RETAILERS TO TARGET CHINA IN 1989 MR WADA MOVED COMPANY HEADQUARTERS FROM JAPAN TO HONG KONG DESPITE THE MASSACRE OF PRODEMOCRACY DEMONSTRATORS IN BEIJING'S TIANANMEN SQUARE AND THE RESULTING PESSIMISM ABOUT THE COLONY'S FUTURE ONCE ESTABLISHED IN HONG KONG YAOHAN WAS AMONG THE FIRST DEPARTMENTSTORE OPERATORS TO OPEN STORES IN THE COLONY'S SUBURBAN AREAS THOSE STORES ARE AMONG THE GROUP'S BEST PERFORMERS AND RIVAL RETAILERS ARE OPENING SUBURBAN OUTLETS WORLDWIDE THE GROUP OPERATES MORE THAN 400 DEPARTMENT STORES AND BOUTIQUES AS WELL AS RESTAURANTS AND CAKE SHOPS IN MORE THAN A DOZEN COUNTRIES OWNS FOODPROCESSING AND TRADING OPERATIONS IN CHINA HONG KONG AND SOUTH AMERICA AND RUNS A DISTRIBUTION CENTER IN SINGAPORE FOR YAOHAN STORES IN SOUTHEAST ASIA DESPITE THE MOVE TO HONG KONG HALF OF YAOHAN'S GROUP SALES CONTINUE TO BE GENERATED BY ITS JAPANESE STORES YAOHAN BUSINESSES IN HONG KONG MACAO AND CHINA TO ACCOUNT FOR ABOUT 20 OF THE GROUP'S COMBINED SALES SO FAR YAOHAN OPERATES JUST THREE OUTLETS ON THE MAINLAND ALL JOINTVENTURE DEPARTMENT STORES IN SHANGHAI SHENZHEN AND BEIJING YAOHAN'S FIRST BAKERY AND THE FIRST MOSBURGER FASTFOOD RESTAURANT ARE DUE TO OPEN IN SHANGHAI THIS YEAR DESPITE ITS MUCHHYPED PLANS FOR RETAIL EXPANSION IN CHINA INDUSTRY EXECUTIVESSAY YAOHAN'S EXISTING OPERATIONS IN CHINA AREN'T PARTICULARLY IMPRESSIVE THE GROUNDWORK IS BEING LAID BUT WHAT WE CAN ACTUALLY SEE IS A BIT DISAPPOINTING SAYS MR CHEUNG OF WARDLEY JAMES CAPEL A SUPPLIER TO YAOHAN'S BEIJING OUTLET SAYS THE COMPANY DOESN'T SEEM TO HAVE A VERY FIRM GRIP ON THAT STORE RETAIL IS A DETAIL BUSINESS THE SUPPLIER SAYS BUT IT SEEMS THEY ARE VERY HANDS OFF HIROAKI KAWAI A YAOHAN DIRECTOR SAYS THAT MEETING HONG KONG STANDARDS IS VERY DIFFICULT BUT WE'RE TRYING TO IMPROVE THE QUALITY AT THE BEIJING STORE YAOHAN'S FIRST SHANGHAI STORE NO 1 YAOHAN A JOINT VENTURE WITH SHANGHAI NO 1 DEPARTMENT STORE IS A TEST UNIT MEANT TO PREPARE BOTH YAOHAN AND ITS LOCAL PARTNER TO OPERATE THE PLANNED JEWEL IN YAOHAN'S CHINA CROWN NEXTAGE SHANGHAI YAOHAN DUE TO OPEN IN LATE 1995 THE 21STORY 144000SQUAREMETER COMPLEX IS TO FEATURE BEAUTY SALONS DEPARTMENT AND SPECIALTY STORES A SWIMMING POOL A MEMBERSONLY CLUB AND AN ICESKATING RINK THE TEST STORE IS NEAT AND FULLY STOCKED BUT ITS DECORATION MERCHANDISE AND OPERATING PROCEDURES ARE CLOSER TO THOSE OF A TRADITIONAL CHINESE DEPARTMENT STORE THAN A FOREIGNOWNED ONE DISPLAYS AND MERCHANDISE ARE DRAB AND THERE ARE FEW OF THE TOOLS MOST MODERN RETAILERS CONSIDER NECESSARY FOR TRACKING INVENTORY AND SALES WORKING WITHOUT A COMPUTERIZED INFORMATION SYSTEM MANAGERS FILL OUT INDIVIDUAL RECEIPTS FOR EACH TRANSACTION ON TISSUELIKE PAPER A PRACTICE THEY SAY IS REQUIRED BY LOCAL TAX AUTHORITIES MR WADA ACKNOWLEDGES THE INEFFICIENCY OF SUCH PROCEDURES BUT A TEST STORE IS A WAY TO RESOLVE PROBLEMS BEFORE MOVING ON TO BIGGER PROJECTS MEANWHILE MR WADA IS FOCUSED ON WHAT HE SAYS IS THE KEY TO YAOHAN'S RETAIL EXPANSION IN CHINA A WHOLESALE DISTRIBUTION COMPLEX TO BE OPENED IN BEIJING IN MID1995 HE SAYS THE COMPLEX WILL SUPPLY MERCHANDISE TO YAOHAN OUTLETS IN THE BEIJING AND SHANGHAI AREAS BECAUSE CHINA'S DISTRIBUTION SYSTEM IS SO BACKWARD MR WADA SAYS WE HAVE TO ORGANIZE THE COMPLEX FIRST SO THE REST CAN DEVELOP 9310150166 931015 SMALL BUSINESS A SPECIAL REPORT WARMUPS BEYOND THE BANKS SOURCES OF STARTUP FINANCING ARE PROLIFERATING ENTREPRENEURS JUST HAVE TO KNOW WHERE TO LOOK BY UDAYAN GUPTA WHEN JEFFREY GLICKMAN WANTED TO START A MARKETING BUSINESS SIX YEARS AGO HE DIDN'T HAVE TO WASTE A LOT OF TIME LOOKING FOR MONEY HIS BANKER TOLD HIM TO GET A REAL JOB AND VENTURECAPITAL FIRMS TOLD HIM THEY DIDN'T FINANCE LOWTECH STARTUPS LIKE HIS THERE WAS NOWHERE ELSE TO TURN SO HE STARTED THE BUSINESS WITH 5000 IN SAVINGS AND THE CREDIT AVAILABLE ON HIS CREDIT CARDS NOW HE SAYS HIS FIRST CLASS MARKETING INC IN CARLSBAD CALIF HAS 170 EMPLOYEES AND REVENUE OF MORE THAN 10 MILLION A YEAR IF MR GLICKMAN WERE STARTING OUT TODAY HIS EXPERIENCE RAISING MONEY WOULD BE FAR DIFFERENT SOURCES OF STARTUP FINANCING ARE PROLIFERATING FROM NETWORKS OF WEALTHY INDIVIDUALS TO STATESPONSORED FUNDS WITH MANDATES TO PROMOTE ECONOMIC DEVELOPMENT THOUGH THE POOL OF CAPITAL AVAILABLE FOR NEW BUSINESSES MAY NOT BE ANY BIGGER THAN A DECADE AGO THE GREATER VARIETY OF FINANCING SOURCES WITH DIFFERENT MISSIONS AND OUTLOOKS MAKES IT MORE LIKELY THAT A VENTURE WILL FIND MONEY SOMEWHERE AS A SOCIETY WE ARE MORE COMFORTABLE WITH THE NOTION OF ENTREPRENEURSHIP SAYS DAVID BROPHY A PROFESSOR OF FINANCE AT THE UNIVERSITY OF MICHIGAN MORE PEOPLE UNDERSTAND WHAT ENTREPRENEURSHIP IS ALL ABOUT IT REMAINS TO BE SEEN WHETHER THE SPREAD OF CAPITAL SOURCES WILL HELP CREATE SSFUL SMALL COMPANIES ONE LIKELY EFFECT TODAY'S STARTUPS SHOULD FACE LESS COMPETITION IN THEIR INDUSTRIES THAN THEIR PREDECESSORS DID THROUGH MOST OF THE '80S THAT'S BECAUSE VENTURE FUNDS WHICH CONCENTRATE ON HIGHTECH STARTUPS NOW REPRESENT A SMALLER SLICE OF EARLYSTAGE FUNDING AT THE SAME TIME HOWEVER SMALLBUSINESS SPECIALISTS WORRY THAT MANY OF THE NEWER FINANCING INSTITUTIONS DON'T HAVE THE SAME STAKE IN SEEING A BUSINESS SUCCEED AS TRADITIONAL VENTURECAPITAL FIRMS BECAUSE MANY OF THESE CAPITAL PROVIDERS EMPHASIZE ECONOMIC DEVELOPMENT THEY DON'T ALWAYS PAY ENOUGH ATTENTION TO AN ENTERPRISE'S SOUNDNESS OR PROFIT POTENTIAL SOME EXPERTS SAY NONETHELESS ENTREPRENEURS ARE CLEARLY BENEFITING FROM A LONGTERM TREND THAT HAS OPENED UP OTHER SOURCES OF CAPITAL FOR GENERATIONS NEW ENTREPRENEURS WERE LIMITED LARGELY TO FAMILY MONEY AND SOME BANK LENDING THE LATE 1970S SAW THE RISE TO PROMINENCE OF VENTURECAPITAL FUNDS PRIVATE PARTNERSHIPS THAT TYPICALLY GET THEIR MONEY FROM INSURANCE COMPANIES PENSION FUNDS AND OTHER INSTITUTIONAL INVESTORS AND PROVIDE FINANCING TO COMPANIES IN RETURN FOR EQUITY STAKES WHEN THE VENTURE FUNDS HELPED LAUNCH SOME OF THE MOST SUCCESSFUL HIGHTECH COMPANIES OF THE LATE '70S AND EARLY '80S INCLUDING APPLE COMPUTER INC AND GENENTECH INC FINANCING STARTUPS ESPECIALLY IN HIGH TECHNOLOGY CAPTURED THE PUBLIC IMAGINATION BECAUSE RETURNS OF 30 TO 40 A YEAR WEREN'T UNUSUAL VENTURE FUNDS BULGED WITH MONEY THROUGH MOST OF THE '80S IN 1988 NEW BUSINESSES RECEIVED 16 BILLION FROM VENTURECAPITAL FUNDS ABOUT 42 OF THE TOTAL INVESTED BY THE FUNDS ACCORDING TO VENTURE ECONOMICS A TRADE PUBLICATION IN NEWARK NJ BUT AS THE MARKET FOR INITIAL PUBLIC OFFERINGS TURNED SOUR RETURNS SHRANK AND VENTURE FUNDS PLACED MUCH LESS EMPHASIS ON BUDDING COMPANIES VENTURECAPITAL FUNDS' STARTUP INVESTMENTS ROSE LAST YEAR FROM 1991 BUT STILL TOTALED JUST 671 MILLION OR ONEQUARTER OF THE FUNDS' TOTAL FINANCINGS VENTURE ECONOMICS REPORTS MOST BIG VENTURECAPITAL FUNDS HAVE MIGRATED UP PREFERRING THE IMMEDIATE RETURNS FROM INVESTING IN ESTABLISHED COMPANIES TO THE LONGRANGE UNCERTAINTY OF BUILDING A BUSINESS SAYS EDWARD MATHIAS A MANAGING DIRECTOR OF T ROWE PRICE ASSOCIATES A BALTIMORE MONEYMANAGEMENT FIRM FOR THE SAME REASON SMALL VENTURECAPITAL FUNDS WHICH REMAIN MORE WILLING TO INVEST IN NEW ENTERPRISES HAVE HAD DIFFICULTY RAISING CAPITAL FROM INSTITUTIONAL AND OTHER BIG INVESTORS BUT THERE'S MUCH MORE STARTUP MONEY AVAILABLE NOW OUTSIDE THE TRADITIONAL VENTURECAPITAL AREA FOR STARTERS FEDERAL AND STATE GOVERNMENTS HAVE ALLOCATED FAR GREATER RESOURCES FOR NEW BUSINESSES SAYS CRAIG ISOM A CONSULTING PARTNER WITH ARTHUR ANDERSEN & CO IN WOODLAND HILLS CALIF CONGRESS LAST YEAR VOTED TO GREATLY EXPAND THE SIZE OF THE SMALL BUSINESS INNOVATION RESEARCH PROGRAM WHICH FINANCES COMPANIES THAT PLAN TO TRANSFORM LABORATORY RESEARCH INTO REALWORLD PRODUCTS THE CHANGE WILL MAKE AS MUCH AS 14 BILLION ANNUALLY AVAILABLE TO SMALL BUSINESS ESTIMATES INNOVATION DEVELOPMENT INSTITUTE A SWAMPSCOTT MASS RESEARCH FIRM THE BIGGEST QUALIFICATION FOR SBIR FUNDING RESEARCH LIKELY TO LEAD TO A PRODUCT IN WHICH A PARTICULAR FEDERAL AGENCY IS INTERESTED TO A VENTURECAPITAL FUND IN CONTRAST THE PRODUCT'S PROFIT POTENTIAL WOULD BE PARAMOUNT BECAUSE MUCH OF VENTURE FUNDING THROUGH THE YEARS HAS BEEN CONCENTRATED AROUND BOSTON AND SAN FRANCISCO STATE GOVERNMENTS AND PUBLIC PENSION FUNDS IN OTHER AREAS ARE PROVIDING STARTUP CAPITAL TO SPUR BUSINESS IN THEIR OWN NEIGHBORHOODS MINNESOTA HAS PROVIDED 50 MILLION TO LAUNCH MINNESOTA TECHNOLOGY A CAPITAL SOURCE FOR NEW TECHNOLOGY BUSINESSES BASED IN THE STATE MASSACHUSETTS PENNSYLVANIA AND MARYLAND ARE AMONG A HOST OF STATES THAT HAVE EARMARKED FUNDS FOR LOCAL STARTUP BUSINESSES IN MARYLAND THE STATE GOVERNMENT AND THREE PUBLICEMPLOYEE PENSION FUNDS HAVE COMMITTED 191 MILLION TO A VENTURE TRUST IT WILL CHANNEL THE MONEY TO MARYLAND STARTUPS THROUGH EXISTING VENTURECAPITAL FUNDS SINCE ITS INCEPTION IN 1991 THE TRUST HAS FINANCED FOUR VENTURE FUNDS WHICH IN TURN HAVE FUNDED MORE THAN A DOZEN STARTUPS WE WANT A RETURN ON OUR INVESTMENT AND WE WANT TO STIMULATE MORE EARLYSTAGE FINANCING IN MARYLAND SAYS JOHN WEISS MANAGING DIRECTOR OF THE TRUST BUT HE ADDS WE AREN'T GOING TO SACRIFICE THE FIRST GOAL FOR THE SECOND THE PRIVATE INVESTOR OR ANGEL ALSO HAS BECOME MORE ACTIVE SAYS THE UNIVERSITY OF MICHIGAN'S PROF BROPHY ACROSS THE COUNTRY ENTERPRISE FORUMS IN WHICH STARTUP ENTREPRENEURS MAKE PRESENTATIONS BEFORE GATHERINGS OF ANGELS HAVE BECOME COMMON WEALTHY INVESTORS SUCH AS ROLM CORP FOUNDER KEN OSHMAN MICROSOFT CORP COFOUNDER PAUL ALLEN AND SAFEGUARD SCIENTIFICS INC FOUNDER WARREN MUSSER ARE BIG INVESTORS IN MANY STARTUPS IN PENNSYLVANIA 30 SUCCESSFUL ENTREPRENEURS AND CHIEF EXECUTIVES FORMED THE PENNSYLVANIA PRIVATE INVESTORS GROUP TWO YEARS AGO TO PROVIDE SEED FUNDS TO STARTUPS THE GROUP HAS SINCE PROVIDED MORE THAN 2 MILLION TO EIGHT VENTURES SAYS MARC KRAMER ITS EXECUTIVE DIRECTOR ANGEL INVESTMENTS ARE QUICKER THAN USUAL VENTURECAPITAL DEALS HE SAYS MORE IMPORTANT STARTUPS RECEIVE VALUABLE MENTORING FROM INVESTORS WHO HAVE TRAVELED THE SAME PATH EARLIER HE SAYS CORPORATIONS INCREASINGLY ARE PROVIDING STARTUP FINANCING WHEN CHRISTOPHER WILLIAMS WANTED TO START HIS OWN SPECIALIZED FINANCIALSERVICES CONCERN THE SEED FINANCING CAME FROM JEFFERIES & CO AN INVESTMENT BANK IN LOS ANGELES JEFFERIES SEEKING TO EXPAND ITS OPERATIONS AFTER CUTBACKS IN THE LATE 1980S WAS LOOKING FOR NEW MARKET NICHES IT COULD ENTER SAYS MR WILLIAMS SO IT HELPED ESTABLISH WILLIAMS FINANCIAL MARKETS LAST YEAR AS AN OPERATING BOUTIQUE IN NEW YORK THAT SPECIALIZES IN EXOTIC FORMS OF FIXEDINCOME INVESTING SAYS MR WILLIAMS WE BENEFIT FROM THEIR INFRASTRUCTURE AND THEIR DEEP POCKETS BUT WE'RE ALSO ABLE TO FOCUS ON THE NICHE WE WANTED TO AS CORPORATIONS DOWNSIZE AND SHED OPERATIONS THAT AREN'T PART OF THEIR CORE BUSINESSES THEY ALSO ARE LOOKING TO SMALL VENTURES TO PERFORM SOME NECESSARY TASKS SAYS DENNIS BERMAN A PARTNER IN THE NEW YORK OFFICE OF SONNENSCHEIN NATH & ROSENTHAL A WASHINGTONBASED LAW FIRM ESPECIALLY IN PHARMACEUTICALS AND HEALTH CARE BIG COMPANIES ARE TURNING TO SMALLER BUSINESSES TO DEVELOP TECHNOLOGY FASTER AND MORE CHEAPLY THAN THEY OFTEN CAN HE SAYS BIG COMPANIES SUCH AS SMITHKLINE BEECHAM PLC AND GENENTECH ARE AMONG THOSE THAT HAVE ESTABLISHED DEVELOPMENT UNITS TO FIND AND FINANCE VENTURES DEVELOPING NEW TECHNOLOGIES SEED MONEY ISN'T JUST FOR COMPANIES ON THE FAST TRACK COMMUNITYBASED FINANCIAL INSTITUTIONS LENDERS THAT HAVE CHARTERS TO SERVE LOWERINCOME COMMUNITIES AND RECEIVE FUNDS FROM FEDERAL STATE AND PRIVATE SOURCES HAVE BECOME IMPORTANT RESOURCES FOR SMALLER VENTURES SAYS MARTIN TRIMBLE EXECUTIVE DIRECTOR OF THE NATIONAL ASSOCIATION OF COMMUNITY DEVELOPMENT LOAN FUNDS JULIA PARZEN AUTHOR OF A BOOK ON DEVELOPMENT BANKS ESTIMATES COMMUNITYBASED LENDERS HAVE CHANNELED ABOUT 250 MILLION IN STARTUP CAPITAL TO COMMUNITYORIENTED BUSINESSES IN THE PAST SIX YEARS THIS MONEY COMES MAINLY FROM PRIVATE INVESTORS WHO EXPECT TO BE PAID BACK SHE SAYS COMMUNITYBASED LENDERS PROVIDE CAPITAL TO ENTERPRISES THAT OTHERWISE HAVE LITTLE OR NO ACCESS TO STARTUP FUNDING TYPICALLY BUSINESSES WITH THE POTENTIAL TO MAKE MODEST PROFITS SERVE THE COMMUNITY AND CREATE JOBS THOUGH LACKING THE PROMISE OF SPECTACULAR GROWTH THAT VENTURE FUNDS DEMAND AMONG THE INVESTMENTS MADE LAST YEAR BY DELAWARE VALLEY REINVESTMENT FUND A PHILADELPHIA COMMUNITYDEVELOPMENT LOAN FUND WERE A 50000 LOAN TO IMPACT ARCHIVES AN INNERCITY STORAGE FACILITY FOR CORPORATE RECORDS A 100000 LOAN TO LA LAVENDERIA DEL PUEBLO A NORTH PHILADELPHIA SELFSERVICE LAUNDRY AND A 160000 LOAN TO FREEDOM SQUARE ASSOCIATES A PHILADELPHIA DEVELOPER BUILDING AN INNERCITY SHOPPING CENTER THOUGH PRESIDENT CLINTON RECENTLY ANNOUNCED A 382 MILLION PROGRAM THAT WILL EXPAND FUNDING OF COMMUNITYBASED FINANCIAL INSTITUTIONS SOME CRITICS WONDER ABOUT THE EFFECTIVENESS OF SUCH PROGRAMS THE IDEA THAT THESE COMMUNITIES ARE GOING TO BENEFIT FROM LEGISLATIVE ATTEMPTS TO INCREASE THEIR CAPITAL IS NAIVE SAYS JONATHAN MACEY A PROFESSOR OF LAW AT CORNELL UNIVERSITY BUREAUCRACTIC BOTTLENECKS AND CRIME INCREASE THE COST OF INVESTING IN THESE AREAS HE ARGUES AND MONEY SPENT ON BUSINESSES IN THESE COMMUNITIES MAY NOT PRODUCE ADEQUATE RETURNS THESE AREN'T LOANS YOU GET RICH FROM ACKNOWLEDGES JEREMY NOWAK EXECUTIVE DIRECTOR OF DELAWARE VALLEY BUT THE VENTURES ARE SOUND AND LARGELY SUSTAINABLE HE SAYS MR GUPTA IS A STAFF REPORTER IN THE WALL STREET JOURNAL'S NEW YORK BUREAU SOME COMMON CAPITAL REQUIREMENTS FOR STARTING A SMALL BUSINESS WITH PROJECTED FIRSTYEAR REVENUE OF 250000 9310150165 931015 SMALL BUSINESS A SPECIAL REPORT WARMUPS CHAIN REACTIONS FRANCHISES PROVIDE THE COMFORT OF A CORPORATE PARENT AT THE COST OF FREEDOM BY JEFFREY A TANNENBAUM FRANCHISE OR SOLO IN DOZENS OF FIELDS RESTAURANTS MOTELS HAIR SALONS PRINT SHOPS AND MORE PEOPLE WHO START THEIR OWN BUSINESSES NOW FACE THAT CHOICE THEY CAN OPERATE COMPLETELY ON THEIR OWN OR THEY CAN OPERATE WITHIN A FRANCHISE CHAIN FOR MANY PEOPLE BECOMING A FRANCHISEE IS THE SHORTCUT TO PROSPERITY BUT FOR OTHERS IT IS THE SHORTCUT TO BUSINESS HELL SHERI COHEN FOR ONE SAYS SHE IS DELIGHTED THAT SHE CONVERTED HER INDEPENDENT TRAVEL AGENCY IN ATLANTA INTO A FRANCHISE THREE YEARS AGO SHE SIGNED A FRANCHISE CONTRACT WITH A MASTER LICENSEE OF UNIGLOBE TRAVEL INTERNATIONAL INC VANCOUVER CANADA MS COHEN SAYS THE FRANCHISE SYSTEM HELPS HER TRAIN EMPLOYEES AND GIVES HER ACCESS TO LOWER TRAVEL PRICES FOR HER CUSTOMERS THAN MOMANDPOP AGENCIES CAN GET SHE SAYS HER BUSINESS HAS DOUBLED I CREDIT UNIGLOBE WITH THE GROWTH SHE SAYS BUT TALK TO PRINTSHOP OWNER BURTON M SOLOMON IN ATLANTA IN 1987 MR SOLOMON ENTERED THE INDUSTRY BY BECOMING A FRANCHISEE OF POSTAL INSTANT PRESS INC KNOWN AS PIP PRINTING MR SOLOMON SAYS PIP TAUGHT HIM HOW TO RUN A PRINT SHOP BUT HE COMPLAINS THAT THE COST STRUCTURE OF THE FRANCHISE WITH PIP TAKING 9 OF REVENUE FOR ROYALTIES AND AN ADVERTISING FUND MADE IT IMPOSSIBLE FOR HIS SMALL SHOP TO TURN A PROFIT IN ADDITION HE SAYS PIP HELPED HIM PICK A LOCATION THAT HAD TOO LITTLE VISIBILITY AND A HIGH RENT LAST JUNE MR SOLOMON MOVED THE BUSINESS TO A LESSEXPENSIVE SITE AND HIS COMPANY BASIK PRESS INC BEGAN DOING BUSINESS AS CREATIVE IMAGES NOT PIP PRINTING AS AN INDEPENDENT WITH LOWER COSTS MAYBE WE CAN MAKE A GO OF THIS THING HE SAYS BUT MR SOLOMON NOW HAS A LEGAL PROBLEM PIP IS SUING HIM AND HIS WIFE IN A STATE COURT IN LOS ANGELES ALLEGING THAT THEY BREACHED A 20YEAR FRANCHISE AGREEMENT PIP BASED IN AGOURA HILLS CALIF IS ASKING FOR ROYALTIES AND PAYMENTS OF NEARLY 500000 THE COMPANY DECLINES TO COMMENT ON THE SUIT MR SOLOMON SAYS HE IS TRYING TO SETTLE THE DISPUTE AS EXPERIENCES SUCH AS THESE SUGGEST THE DECISION TO BUY A FRANCHISE OR RUN A COMPLETELY INDEPENDENT ENTERPRISE IS A MAJOR CROSSROAD FOR ANYONE WHO WANTS TO START A BUSINESS ONE WHO APPRECIATES THE DIFFERENCES BETWEEN THE TWO BUSINESS FORMS IS ARIS MARDIROSSIAN PRESIDENT OF 6TWELVE CONVENIENT MART INC A ROCKVILLE MD OPERATOR AND FRANCHISER OF CONVENIENCE STORES MR MARDIROSSIAN OFFERS FRANCHISES FOR SALE BUT READILY CONCEDES THAT HE WOULD NEVER THINK OF BUYING SUCH A THING HIMSELF FRANCHISEES PAY FEES AND ROYALTIES IN EXCHANGE FOR USING A FRANCHISER'S BUSINESS FORMAT WHICH THEY MUST FOLLOW SLAVISHLY MR MARDIROSSIAN SAYS HE IS TOO MUCH A MAVERICK TO DO THAT HIMSELF IF YOU CAN'T FOLLOW SOMEBODY ELSE DON'T BUY A FRANCHISE BECAUSE YOUR LIFE WILL BE MISERABLE AND THE FRANCHISER'S LIFE WILL BE MISERABLE HE ADVISES UNLIKE THE OWNERS OF FULLY INDEPENDENT BUSINESSES FRANCHISE OWNERS MUST GIVE UP A GOOD DEAL OF MONEY AND FREEDOM EACH FRANCHISE INVOLVES A DETAILED CONTRACT BETWEEN FRANCHISER AND FRANCHISEE GOVERNING ALL ASPECTS OF THE FRANCHISE ALL THE DETAILED RULES HAVE ENORMOUS APPEAL TO MANY WHO LACK EXPERIENCE OR CONFIDENCE RUNNING A BUSINESS FRANCHISE MARKETERS SAY FRANCHISES HAVE A LOWER DEATH RATE THAN COMPARABLE INDEPENDENT BUSINESSES LARGELY BECAUSE FRANCHISEES FOLLOW PROVEN FORMULAS STATISTICS TO SUPPORT THIS CLAIM ARE HOTLY DEBATED IN THE FIELD BUT THE PROMISE OF REDUCED RISK BEARS A HEAVY PRICE IN INDIVIDUAL FREEDOM FRANCHISE CHAINS GENERALLY WANT ALL OF THEIR UNITS TO LOOK ALIKE AND OPERATE ALIKE IN ALMOST EVERY DETAIL FOR EXAMPLE MOST FASTFOOD FRANCHISERS TELL FRANCHISEES EXACTLY WHAT ITEMS TO OFFER CUSTOMERS AND EXACTLY HOW TO COOK THEM UNIFORMITY HAS PRIORITY OVER EVERYTHING ELSE STRICT ADHERENCE TO RULES FRANCHISERS ARGUE INCREASES PRODUCTIVITY QUALITY AND PROFITS BUT SOME FRANCHISEES HAVE TROUBLE WITH THAT SARAH M YOUNG A SAN DIEGO LECTURER WHO HAS A DOCTORATE IN EDUCATION SAYS SHE HAS BEEN FRUSTRATED AS A FRANCHISEE OF SUCCESS MOTIVATION INSTITUTE INC IN WACO TEXAS WHICH SUPPLIES FRANCHISEES WITH MOTIVATIONAL MATERIALS FOR RESALE DR YOUNG SAYS SHE HAD EXPECTED TO BE ABLE TO SET HER OWN SCHEDULES AND PRIORITIES BUT SHE SAYS THE FRANCHISER BALKED WHEN SHE ARRANGED HER APPOINTMENTS IN BLOCKS OF TWO HOURS RATHER THAN 90 MINUTES WE HAVE SOME CONFLICTS BECAUSE I'M NOT FOLLOWING IN THEIR COOKIECUTTER MOLD SHE SAYS OFFICIALS OF SUCCESS MOTIVATION INSTITUTE DIDN'T RETURN PHONE CALLS SEEKING COMMENT FRANCHISING CONSULTANT EDWARD KUSHELL IN LOS ANGELES OBSERVES THAT FRANCHISEES ARE VERY REGIMENTED SOME ENTREPRENEURS CAN SUPPRESS THEIR CREATIVITY IF THE TRADEOFF IS MAKING A LOT OF MONEY HE SAYS BUT OTHERS CANNOT IF PEOPLE ARE ENTREPRENEURIAL THEY SHOULDN'T BUY SOMETHING THAT'S GOING TO REQUIRE THEM TO ADHERE TO A STRICT SYSTEM HE ADDS THAT DOESN'T NECESSARILY RULE OUT ALL FRANCHISE SYSTEMS THOUGH DAVID A DOYLE NOW PRESIDENT OF HIS OWN TECHNICALPERSONNEL RECRUITING FIRM SYSTEM 1 SEARCH OF THE BAY AREA INC IN WALNUT CREEK CALIF SAYS THAT HE ENJOYED JUST AS MUCH FREEDOM IN HIS FORMER ROLE AS A FRANCHISEE OF DUNHILL PERSONNEL SYSTEM INC A WOODBURY NY UNIT OF WATSCO CO DUNHILL HAD ABSOLUTELY NOTHING TO DO WITH RUNNING OUR DAYTODAY BUSINESS EVER HE SAYS DANIEL ABRAMSON A DIVISION PRESIDENT AT DUNHILL SAYS THE FRANCHISER PROVIDES STRONG NAME RECOGNITION STRUCTURED TRAINING AND DEVELOPMENT AND THE CAMERADERIE OF WORKING WITH OTHER DUNHILL OFFICES AROUND THE COUNTRY TO DO SPLIT BUSINESS IN SPLIT BUSINESS ONE DUNHILL OFFICE FINDS A CANDIDATE TO FILL A JOB OPPORTUNITY IDENTIFIED BY ANOTHER OFFICE BUT DUNHILL DOESN'T PROVIDE A LOT OF HANDHOLDING FROM DAY TO DAY FOR VETERAN FRANCHISEES BECAUSE THEY DON'T NEED IT MR ABRAMSON ADDS THOUGH HE LIKED DUNHILL'S OPERATING FREEDOM MR DOYLE DECIDED HE COULD DO BETTER ON HIS OWN AND NEGOTIATED AN EXIT FROM THE SYSTEM LAST YEAR AFTER ABOUT 13 YEARS MAYBE HE CAN CONCEDES MR ABRAMSON BUT HE CALLS MR DOYLE'S SITUATION UNUSUAL AND INSISTS THAT MOST DUNHILL FRANCHISEES PROBABLY COULDN'T DO BETTER AS INDEPENDENTS HOWEVER MR DOYLE'S VENTURE TURNS OUT THERE ARE CLEARLY SEVERAL ADVANTAGES TO BEING INDEPENDENT SPECIALISTS NOTE THAT MOST FRANCHISE CONTRACTS LAST 10 15 OR EVEN 20 YEARS BUT FRANCHISE IDEAS SOMETIMES LOSE THEIR LUSTER MUCH SOONER FOR EXAMPLE EARLY ENTRANTS INTO THE FROZENYOGURT AND QUICKLUBE MARKETS ENJOYED ONLY A FEW FAT YEARS BEFORE OVERCOMPETITION SET IN DESTROYING SALES FOR MANY AN INDEPENDENT BUSINESS NEEDS NO PERMISSION TO STRIKE OUT IN COMPLETELY NEW DIRECTIONS IF NECESSARY BUT UNLESS A FRANCHISEE HAS A NIMBLE FRANCHISER HE OR SHE MIGHT BE STUCK WITH AN OBSOLETE BUSINESS FORMAT THE ONLY ESCAPE MIGHT BE TO SELL AT A LOSS ANDREW C SELDEN A MINNEAPOLIS FRANCHISING LAWYER WARNS AGAINST SIGNING LONGTERM FRANCHISE CONTRACTS IN FIELDS THAT MIGHT HAVE SHORTTERM LIFE CYCLES FOR EXAMPLE HE WONDERS HOW VIDEOSTORE FRANCHISEES WILL FARE IN SEVERAL YEARS IF INTERACTIVE VIDEO TECHNOLOGIES BY ALLOWING PEOPLE TO CALL UP MOVIES FROM HOME MAKE SUCH STORES OBSOLETE EVEN WHEN FRANCHISE FORMATS PROVE LONGLASTING THERE IS ANOTHER PROBLEM THE CONTRACT EVENTUALLY EXPIRES AND THERE IS USUALLY NO GUARANTEE THAT A FRANCHISE CAN BE RENEWED OR PASSED ALONG TO ANOTHER GENERATION OF THE SAME FAMILY MANY FRANCHISERS SEE FRANCHISE CONTRACTS MERELY AS A LEASE OF INTELLECTUALPROPERTY RIGHTS MR SELDEN NOTES FRANCHISEES MAY DO MUCH ALONG WITH THE FRANCHISER TO ESTABLISH A GOOD REPUTATION FOR THE CHAIN BUT FRANCHISEES ACCRUE NO EQUITY IN THE VALUE OF THE CHAIN'S NAME AND THE DAY MAY COME WHEN THEY CAN NO LONGER EVEN USE THE NAME REGARDLESS OF THE LENGTH OF FRANCHISE CONTRACTS FRANCHISEES TAKE ON CERTAIN BUSINESS RISKS THAT INDEPENDENTS DON'T FACE IF A FRANCHISE LOCATION PROVES TO BE POOR A FRANCHISER MAY NOT LET THE FRANCHISEE MOVE A FEW MILES AWAY BECAUSE ANOTHER FRANCHISEE MAY HAVE THAT TERRITORY BY CONTRAST IF YOU ARE AN INDEPENDENT BUSINESS YOU CAN MANAGE SUCH RISKS YOURSELF SAYS MR SELDEN BUT CAN A NEW MOMANDPOP BUSINESS REALLY EXPECT TO SURVIVE IN THE FACE OF ALL THE FRANCHISED COMPETITION MANY PEOPLE INCLUDING EVEN SOME FRANCHISERS SAY YES CONSIDER MR MARDIROSSIAN WHO FOUNDED 6TWELVE AS A MOMANDPOP INDEPENDENT HE COULD HAVE CHOSEN TO BECOME A FRANCHISEE SAY OF SOUTHLAND CORP WHICH FRANCHISES THE HUGE 7ELEVEN CHAIN INSTEAD THE ENTREPRENEUR LOCATED HIS UNITS NEAR 7ELEVENS AND AIMED TO DO THEM ONE BETTER HE SAYS HE MADE A LOT OF EARLY MISTAKES SUCH AS STOCKING PIGS' FEET IN A NEIGHBORHOOD WHERE THEY WOULDN'T SELL HE ASSUMES THAT 7ELEVEN HAD LONG AGO LEARNED TO AVOID THAT SORT OF THING BUT AFTER A WHILE HIS 6TWELVE STORES WHICH PREVAILED IN A LEGAL DISPUTE WITH SOUTHLAND OVER THEIR NAME CAUGHT ON IF YOU ARE BEST IN YOUR BUSINESS MR MARDIROSSIAN ADVISES YOU WILL DO WELL MR TANNENBAUM IS A STAFF REPORTER IN THE WALL STREET JOURNAL'S NEW YORK BUREAU 9310150164 931015 SMALL BUSINESS A SPECIAL REPORT AVOIDING THE PITFALLS FAMILY MATTERS THE BIGGEST COSTS OF STARTING A BUSINESS MAY NOT BE FINANCIAL BY JENNIFER CODY NEW YORK WHEN GUY ROBINSON AND LAVERNE PARKER DECIDED TO TIE THE KNOT IN 1990 AFTER AN EIGHTYEAR ENGAGEMENT THEY HAD ONE SMALL PROBLEM HOW COULD THEY POSSIBLY STOP WORKING LONG ENOUGH TO SQUEEZE IN THE WEDDING WE PLANNED TO GET MARRIED SEVERAL TIMES BUT WE KEPT PUTTING IT OFF RECALLS THE 43YEAROLD MR ROBINSON WHO WITH MS PARKER RUNS STRATEGIC INTELLIGENCE INC A SOFTWAREDEVELOPMENT COMPANY HE FOUNDED IN 1982 SOMETHING ALWAYS CAME UP THE COUPLE'S WORKWEEK OFTEN STRETCHED TO SEVEN DAYS WITH EACH PARTNER PUTTING IN 10 TO 15 HOURS DAILY AT THE OFFICE BEFORE RETURNING SOMETIMES WITH STILL MORE WORK IN HAND TO THE APARTMENT THEY SHARED EXASPERATED BY THE LONG WAIT FRIENDS FINALLY CONTACTED A JUDGE AND TALKED THE COUPLE INTO HAVING A SMALL CEREMONY DURING A LUNCH BREAK ON A BUSINESS DAY EVEN THEN THE TWO WERE ON A CONFERENCE CALL WITH A CUSTOMER UNTIL JUST 10 MINUTES BEFORE EXCHANGING VOWS WHILE THE ROBINSONS' SITUATION MAY BE SOMEWHAT UNUSUAL THEIR QUANDARY THE TRICKY TASK OF JUGGLING THE OFTEN CONFLICTING DEMANDS OF A RELATIONSHIP AND A BUSINESS IS FAR FROM RARE INDEED MANY COUPLES SOON LEARN THAT NOT ALL THE COSTS OF ENTREPRENEURSHIP ARE FINANCIAL THE UNCERTAINTY ABOUT INCOME THE LONG HOURS AND THE LACK OF JOB SECURITY ALL PUT A GREAT DEAL OF PRESSURE ON MARITAL STABILITY WHEN ONE OR BOTH SPOUSES ARE INVOLVED IN A BUSINESS VENTURE ENTREPRENEURS ARE VERY INDEPENDENTLY ORIENTED AND HIGHLY COMMITTED TO THE ENTERPRISE THEY ARE UNDERTAKING EXPLAINS JOHN CLIZBE A BUSINESS PSYCHOLOGIST IN NEW HAVEN CONN THOSE TWO CHARACTERISTICS RUN COUNTER TO FAMILY LIFE MAJOR ADJUSTMENTS ARE REQUIRED AND IT IS OFTEN THE FAMILY THAT HAS TO MAKE THESE ADJUSTMENTS TERESA SOLOMON WHO FOUNDED ARTESANIA INC IND PROFESSIONAL LIVES FIT TOGETHER REASONABLY WELL ALTHOUGH THE HIGH LEVEL OF STRESS OCCASIONALLY BECOMES A PROBLEM PERIODICALLY WE ARE JUST TOTALLY OUT OF WHACK SAYS THE 36YEAROLD MS SOLOMON WHOSE ANN ARBOR MICH COMPANY SELLS MAILORDER EDUCATIONAL PRODUCTS FOR HISPANIC CHILDREN BECAUSE I AM SPREAD SO THIN TRYING TO ORGANIZE THINGS LIKE VACATIONS CAN BE HARD A CASE IN POINT MS SOLOMON AND HER HUSBAND A BRAND MANAGER AT THE US ARM OF DUTCH CONSUMERPRODUCTS GIANT UNILEVER GROUP HAD LITTLE OPPORTUNITY TO CELEBRATE THEIR FIRST ANNIVERSARY RECENTLY WE ATE AT ARBY'S SHE SAYS KATHLEEN DIAMOND THE FOUNDER OF LANGUAGE LEARNING ENTERPRISES IN WASHINGTON DC HAS ALSO MANAGED TO COMBINE FAMILY AND BUSINESS FAIRLY SMOOTHLY BUT SHE TOO IS WELL AWARE OF THE PITFALLS IF YOU HAVE ONE SPOUSE WHO IS PARTICULARLY JEALOUS OF TIME OR IF THE NONBUSINESS SPOUSE IS EVER DOUBTFUL ABOUT THE BUSINESS OR IF COMMUNICATION FAILS YOU ARE GOING TO HAVE DIFFICULTIES SAYS THE 45YEAROLD MS DIAMOND BUSINESS OWNERS ARE TOTALLY CONSUMED SO IF THOSE AROUND US DON'T GIVE US THE SPACE WE DON'T MAKE IT IN BUSINESS OR WE CHANGE THE PEOPLE AROUND US FOR MANY SPOUSES OF ENTREPRENEURS THE SOLUTION IS TO TAKE PART IN THE NEW BUSINESS THEMSELVES A COMMON PRESCRIPTION IS IF YOU CAN'T FIGHT 'EM JOIN 'EM SAYS DR CLIZBE ACCORDING TO THE SMALL BUSINESS ADMINISTRATION THE NUMBER OF JOINTLY OWNED PROPRIETORSHIPS MOST OF WHICH CONSIST OF HUSBANDANDWIFE TEAMS SOARED FROM 200000 IN 1987 TO ABOUT 500000 IN 1990 THE LATEST YEAR FOR WHICH FIGURES ARE AVAILABLE ROSANN LEVY 45 IS ONE OF THOSE WHO CHOSE THIS ROUTE DESPITE HER OWN 15YEAR CAREER IN WHOLESALE TRAVEL SHE SAYS SHE WAS DEFINITELY FEELING LEFT OUT BEFORE SHE MADE THE MOVE A FEW YEARS AGO TO ARTHUR D LEVY & CO HER HUSBAND'S MANHATTANBASED ACCOUNTING FIRM SIGNING ON AS A MARKETING AND PUBLICRELATIONS CONSULTANT SHE SAYS NOT ONLY BOOSTED HER JOB SATISFACTION BUT ALSO STRENGTHENED HER MARRIAGE IT ABSOLUTELY HELPS TO BE DOING THE SAME THING SHE SAYS IT BRINGS YOU CLOSER TOGETHER ARTHUR LEVY AGREES THAT HAVING HIS WIFE ON BOARD HAS BEEN A BLESSING THE BUSINESS HAS WORKED WELL BECAUSE WE HAVE WORKED VERY HARD AT IT HE SAYS WE HAVE THE SAME GOAL THE TWO NOW ALSO RUN THE FAMILY BUSINESS COUNCIL OF GREATER NEW YORK A NONPROFIT FORUM FOR FAMILYOWNED BUSINESSES NOT ALL ENTREPRENEURIAL COUPLES THOUGH FIND THE ARRANGEMENT SUCH A HAPPY ONE THE BIGGEST THING IS THAT WHEN YOU GO HOME FROM A DAY'S WORK YOU LIKE TO TALK ABOUT WORK BUT YOU CAN'T DO IT SAYS STRATEGIC INTELLIGENCE'S MR ROBINSON THERE IS NO OUTLET FOR THE STRESSES OF RUNNING THE BUSINESS AND THEY SPILL OVER INTO PERSONAL LIFE HE IS SPEAKING FROM EXPERIENCE AS HIS EARLIER MARRIAGE ENDED IN DIVORCE HIS FIRST WIFE HE RECALLS SAID I WORKED TOO HARD AND I WAS NEVER AROUND MARCIA ROSEN WHO TEACHES CLASSES IN NEW YORK FOR ENTREPRENEURIAL WOMEN AND IS WRITING A BOOK ABOUT WOMEN IN BUSINESS ARGUES THAT THE PRESSURES OF A NEW VENTURE CAN BE EVEN GREATER WHEN THE ENTREPRENEUR IS A WOMAN PEOPLE ARE NOT COMFORTABLE WITH THE NEW ROLES THEY PLAY IN THE WOMAN'S LIFE EXPLAINS MS ROSEN WHO EIGHT YEARS AGO ENDED BOTH HER MARRIAGE AND A BUSINESS PARTNERSHIP WITH HER FORMER HUSBAND THEY LIKE THE OLD ROLES THAT THEY PLAYED BECAUSE THEY ARE FAMILIAR THE MAN IS ABLE TO COME HOME AND HAVE THAT FAMILY SUPPORT THE WOMAN DOESN'T COME HOME AND GET IT AND THAT LEADS TO RESENTMENTS LIKE OTHER SPECIALISTS IN HER FIELD SHE SAYS THE RELATIONSHIP BETWEEN DIVORCE AND ENTREPRENEURSHIP IS DIFFICULT TO QUANTIFY STILL SHE NOTES A SIZABLE NUMBER OF THE WOMEN ENTREPRENEURS SHE HAS ENCOUNTERED ARE DIVORCED DR CLIZBE IN NEW HAVEN FOR HIS PART SAYS THAT DIVORCE AS THE RESULT OF ENTREPRENEURIAL PRESSURES IS SOMETHING HE HAS SEEN IN SPADES DIFFERENCES BETWEEN THE SEXES ALSO PLAY A LARGE ROLE IN DETERMINING HOW ENTREPRENEURIAL COUPLES HANDLE BEING ON THE JOB TOGETHER ACCORDING TO MS ROSEN WHO HAS LAUNCHED FOUR BUSINESSES OF HER OWN OVER THE PAST 30 YEARS WOMEN HAVE ONE WAY OF DOING BUSINESS AND MEN HAVE ANOTHER SHE SAYS THE FORMER ARE LIKELY TO BE MORE NURTURING SHE MAINTAINS THEY DEAL DIFFERENTLY WITH EMPLOYEES AND VENDORS AND TEND TO BE MORE DEMOCRATIC MEN ARE MORE AUTHORITARIAN SO HOW DOES AN ENTREPRENEURIAL COUPLE MAKE A SUCCESS OF BOTH WORK AND WEDLOCK THE IDEA OF MARKING OUT SPECIFIC DUTIES IS CRUCIAL MS ROSEN SAYS PARTICULARLY IN SITUATIONS WHERE THE COUPLE IS IN BUSINESS TOGETHER MS PARKER OF STRATEGIC INTELLIGENCE AGREES WORKING WITH HER HUSBAND USED TO BE MUCH MORE DIFFICULT THAN IT IS NOW SHE SAYS IN THE BEGINNING WE WOULD FIGHT A LOT OVER PHILOSOPHICAL DIFFERENCES NOW WE HAVE A CLEAR DIVISION OF RESPONSIBILITY HE TAKES CARE OF THE TECHNICAL END OF THE BUSINESS AND I TAKE CARE OF EVERYTHING ELSE THE LEVYS RELY ON A SIMILAR STRATEGY WE REALIZED THAT IF WE EACH TOOK DIFFERENT AREAS THEN THE ISSUES OF CONFLICT WOULD BE REDUCED SAYS MR LEVY WHO HANDLES THE ACCOUNTING AND LEAVES THE PUBLICRELATIONS END OF THE BUSINESS TO HIS WIFE THE ONLY TIME WE HAVE A PROBLEM IS WHEN WE CROSS THE BOUNDARIES IN MS DIAMOND'S CASE A MAJOR FACTOR WAS HER HUSBAND'S WILLINGNESS TO MAKE ACCOMMODATIONS FOR HER CAREER AND TAKE UP MORE OF THE SLACK AT HOME I SPENT A LOT OF TIME AWAY WHEN I WAS GETTING THE BUSINESS GOING SHE SAYS WHERE I HAD BEEN DOING THE CARPOOLING FOR THE KIDS HE HAD TO BUT HE WAS VERY SURE THAT I WAS GOING TO MAKE IT SO HE NEVER EVER STOOD IN MY WAY OR CAUSED ME TO FEEL LIKE I SHOULDN'T FEEL GOOD ABOUT MY WORK NOW MS DIAMOND SAYS THE SUCCESS OF HER BUSINESS IT REPORTED MORE THAN 1 MILLION IN SALES LAST YEAR HAS EASED WHATEVER STRAINS THEY FELT AT FIRST MEANWHILE MS DIAMOND'S HUSBAND BARRY SAYS THAT HIS POSITION AS THE ATTORNEY FOR LANGUAGE LEARNING ENTERPRISES HAS GIVEN HIM AN ADDED INTEREST IN HIS WIFE'S BUSINESS IF I WERE TOTALLY DISCONNECTED FROM HER BUSINESS IT WOULDN'T BE THE SAME HE SAYS I THINK IT WOULD SIMPLY REQUIRE MORE ATTENTIVENESS OR MAYBE MORE WILLINGNESS OR EVEN SACRIFICE THAN HAS BEEN THE CASE FOR ME ANOTHER KEY WORD MANY AGREE IS BALANCE SAYS DR CLIZBE THERE MUST BE A PROFESSIONAL BALANCE BOTH SPOUSES MUST ENJOY WHAT THEY ARE DOING PEOPLE HAVE TO HAVE A LIFE THAT THEY ARE SATISFIED WITH THAT KIND OF SATISFACTION IS MORE LIKELY IF THE OTHER SPOUSE WORKS OUTSIDE THE HOME AS WELL HE SAYS ALTHOUGH HE CAUTIONS THAT WHILE SUCH AN ARRANGEMENT MIGHT HELP A MARRIAGE SURVIVE IT DOESN'T NECESSARILY MAKE IT BETTER A BALANCING OF TIME IS IMPORTANT AS WELL YOU HAVE TO SCHEDULE IN FUN TIME SAYS MS ROSEN YOU NEED TO CREATE THAT KIND OF TIME FRAME FOR EACH OTHER MS CODY IS A STAFF REPORTER IN THE WALL STREET JOURNAL'S NEW YORK BUREAU 9310150163 931005 LETTERS TO THE EDITOR THE DAILY GRIND OF THE LEISURE CLASS' I READ WITH SOME HORROR GENE I MAEROFF'S SEPT 13 EDITORIAL PAGE PIECE COLLEGE TEACHERS THE NEW LEISURE CLASS AS AN ASSOCIATE DIRECTOR OF THE HIGHER EDUCATION RESEARCH INSTITUTE I WAS RESPONSIBLE FOR DEVELOPING THE REPORT ON WHICH HE BASES SOME OF HIS CONCLUSIONS SINCE THESE CONCLUSIONS SEEMED SO MUCH AT ODDS WITH OURS I FELT COMPELLED TO REEXAMINE THE DATA I HAVE FOUND THAT HIS ASSERTIONS APPEAR TO BE AT THE KINDEST READING IN ERROR MR MAEROFF SUGGESTS THAT BECAUSE FACULTY DO NOT SPEND 40 HOURS A WEEK IN THE CLASSROOM THEY HAVE AMPLE TIME FOR RECREATION AND DOING NOTHING SPECIAL IN FACT OUR SURVEY SHOWS THAT FACULTY SPEND AN AVERAGE 45 HOURS A WEEK ON SEVEN TASKS THAT BY NO MEANS REPRESENT ALL THE WORK THEY HAVE TO DO SCHEDULED TEACHING PREPARING FOR TEACHING ADVISING AND COUNSELING OF STUDENTS COMMITTEE WORK AND MEETINGS OTHER ADMINISTRATION RESEARCH AND SCHOLARLY WRITING AND CONSULTATION WITH PATIENTS AND CLIENTS IF FACULTY ARE SPENDING TIME PLAYING TENNIS THEY MUST BE DOING IT LATE AT NIGHT MR MAEROFF DENIGRATES THE ACTIVITY OF ADVISING AND COUNSELING STUDENTS BY GROUPING IT WITH NONACADEMIC ACTIVITIES SUCH AS MEETINGS AND ADMINISTRATION IN FACT PERSONAL ADVISING OF AND CONSULTATION WITH STUDENTS IS AN INTEGRAL PART OF THE TEACHING PROCESS OUR SURVEYS OF STUDENTS INDICATE THAT THEY FIND TALKING TO PROFESSORS OUTSIDE OF CLASS TO BE QUITE VALUABLE AND THEY WANT MORE OF IT NOT LESS MR MAEROFF CLAIMS FACULTY SPEND ABOUT 20 HOURS PER WEEK TEACHING THIS NUMBER IS INCORRECT WHEN YOU ADD UP THE TIME THAT EACH FACULTY MEMBER SPENDS IN THE CLASSROOM PREPARING FOR TEACHING AND ADVISING OR COUNSELING RATHER THAN ADDING UP NATIONAL MEANS FOR INDIVIDUAL ACTIVITIES AS MR MAEROFF DID YOU FIND THAT THEY SPEND MORE LIKE 28 HOURS PER WEEK IN THESE ACTIVITIES OR ALMOST TWOTHIRDS OF THEIR TIME STILL 28 HOURS IS NOT 45 WHERE DO FACULTY SPEND THE REST OF THEIR TIME SOME OF IT ALTHOUGH NOT MUCH AS MR MAEROFF POINTS OUT IS SPENT ON RESEARCH THE BULK OF THE REST IS SPENT IN MEETINGS AND ACADEMIC ADMINISTRATION MR MAEROFF UNDOUBTEDLY FEELS THESE ACTIVITIES HAVE DIRECT AND INDIRECT EFFECT ON HOW TEACHING IS DONE AND UNFORTUNATE AS IT MAY SEEM TEACHING COULD NOT GO ON WITHOUT THEM IN ANY EVENT I WOULD SUBMIT THAT SUCH ACTIVITIES ARE NOT PART OF THE PLEASANT LIFE FOR MOST FACULTY MEMBERS THAT MR MAEROFF ALLUDES TO MORE THAN HALF OF THE FACULTY IN OUR SURVEY FELT COMMITTEE AND FACULTY MEETINGS WERE A SIGNIFICANT SOURCE OF STRESS IN THEIR PROFESSIONAL LIVES ON THE SUBJECT OF RESEARCH MR MAEROFF ASKS WHY SHOULD TIME FOR RESEARCH BE BUILT INTO ALL SCHEDULES WHEN EVERYONE DOESN'T DO RESEARCH OR EVEN WANT TO DO IT THE ANSWER IS THAT IT ISN'T OUR DATA CLEARLY SHOW THAT THE LESS TIME A FACULTY MEMBER SPENDS ON RESEARCH THE MORE HE OR SHE SPENDS ON CLASSROOM TEACHING MANY OF THE ISSUES RAISED BY MR MAEROFF ARE WORTHY OF DISCUSSION FOR THE DISCUSSION TO RESULT IN MEANINGFUL DECISIONS ON POLICY HOWEVER IT SHOULD BE CONDUCTED IN A MEANINGFUL MANNER EXTRACTING HALFTRUTHS FROM RESEARCH AND SALTING THEM WITH SNIDE AND MEANSPIRITED REMARKS BASED ON NO DATA AT ALL SERVES NEITHER THE ACADEMIC COMMUNITY THE PUBLIC AT LARGE MR MAEROFF HIMSELF NOR THE FOUNDATION HE REPRESENTS I WOULD LIKE TO WRITE A LENGTHY RESPONSE TO MR MAEROFF BUT I DON'T HAVE TIME I TAUGHT THIS MORNING FROM 830 UNTIL 10 AND ALTHOUGH I DON'T HAVE ANY MORE CLASSES TODAY I HAVE TOO MUCH WORK I MUST FINALIZE PREPARATION FOR CLASS TOMORROW CONTINUE PREPARATION FOR CLASSES NEXT WEEK BEGIN PREPARATION FOR CLASSES THE FOLLOWING WEEK GRADE PAPERS WRITE PROBLEM SETS WRITE ANSWER SHEETS FOR THOSE PROBLEM SETS HOLD OFFICE HOURS FOR STUDENT VISITATION AND POSSIBLY POSSIBLY SQUEEZE IN A HALFHOUR OF RESEARCH BEFORE I LEAVE MY OFFICE TODAY AT 6 I ARRIVED AT 8 AND I WON'T TAKE A BREAK FOR LUNCH AND OH YES I'LL START THINKING ABOUT AN EXAM I PLAN TO GIVE IN TWO WEEKS EXAMS DON'T DROP OUT OF THE SKY SOMEBODY HAS TO WRITE THEM AND THEN GRADE THEM OF COURSE I COULD DO MORE IF I HAD THE TIME IF I REALLY HAD TIME I COULD CONTINUE READING SOME OF THE BOOKS AND ARTICLES FROM MY LIST TO CONSIDER FOR MY COURSES NEXT SEMESTER I COULD WORK MORE ON MY RESEARCH ALWAYS MORE TO DO THERE I COULD EVEN BEGIN TO THINK ABOUT NEW COURSES FOR YEARS AHEAD OF COURSE THESE ARE THINGS ON WHICH WE WORK HARDEST DURING THE SUMMERS WHEN MR MAEROFF APPARENTLY THINKS WE DO NOTHING AT ALL IN LAMBASTING COLLEGE PROFESSORS FOR SPENDING ONLY 98 TO 105 HOURS A WEEK IN CLASS WITH STUDENTS WHICH ACTUALLY CAN REPRESENT THREE OR FOUR CLASSES TOTALING MORE THAN A HUNDRED STUDENTS MR MAEROFF DISMISSES WITH A PASSING REFERENCE THE FACT THAT AVERAGE FACULTY SALARIES RANGE FROM 34420 FOR ASSISTANT PROFESSORS PRESUMABLY EVEN A FELLOW IN THE IVORY TOWER OF THE CARNEGIE FOUNDATION FOR THE ADVANCEMENT OF TEACHING OCCASIONALLY VENTURES INTO THE REAL WORLD LONG ENOUGH TO RECOGNIZE THAT 34420 OFTEN CANNOT SERVE AS A FULLTIME SALARY FOR AN INDIVIDUAL SUPPORTING HIMSELF/HERSELF AND A FAMILY TO BOOT PARTICULARLY IN THE MORE UPSCALE AREAS IN WHICH SOME OF THE FINEST COLLEGES EXIST THIS SALARY IS CONSIDERABLY LESS THAN MANY KINDERGARTEN AND ELEMENTARY SCHOOL TEACHERS MAKE IN THE BETTERFUNDED SUBURBAN SCHOOL DISTRICTS AND IN FACT IT IS CONSIDERABLY LESS THAN MANY DISTRICTS PAY THEIR VETERAN SANITATION WORKERS IF MR MAEROFF WISHES TO ENGAGE HIMSELF IN SOME TRULY USEFUL ACTIVITY HE MIGHT PONDER THE RELATIONSHIP WHICH HE IMPLICITLY ASSUMES EXISTS BETWEEN TIME SPENT IN THE CLASSROOM ON THE ONE HAND AND QUALITY AND RESULTS OF TEACHING AND LEARNING ON THE OTHER THE FINDINGS IF HE SCRUTINIZES THE MANY PUBLIC SCHOOL SYSTEMS WHERE SO MUCH TIME IS SPENT IN CLASS WITH STUDENTS AND SUCH MEAGER OUTCOMES RESULT MAY INTEREST AND OUTRAGE HIM AS A PARTTIME TEACHER FOR 18 YEARS I SPENT REMARKABLY FEW HOURS PER WEEK ACTUALLY TEACHING OR PREPARING FOR CLASSES YET I CONSISTENTLY RANKED HIGHER IN STUDENT EVALUATIONS THAN THE AVERAGE OF MY FULLTIME COLLEAGUESALTHOUGH MY AVERAGE CLASS GRADES WERE LOWER AS MR MAEROFF SEEMS TO RECOGNIZE PARTTIME ADJUNCT FACULTY ARE THE UNSUNG HEROES OF PRODUCTIVITY ON COLLEGE CAMPUSES TODAY FULLTIME TENURED FACULTY WITH THEIR SABBATICALS SUMMERS OFF AND OFTEN LEISURELY WORKWEEK OFTEN SEE THEM AS A THREAT AS WELL THEY SHOULD ON A PER STUDENT OR PER CLASS BASIS IT IS NOT UNCOMMON FOR AN ADJUNCT TEACHER TO BE PAID ONEFOURTH AS MUCH AS A FULLTIMER I WAS ABSOLUTELY APPALLED BY MR MAEROFF'S ARTICLE HOW DARE HE LEISURE CLASS INDEED TOOK ME SEVERAL HOURS AT THE BEACH JUST TO CALM DOWN BUT I DID MANAGE TO COME UP WITH NUMEROUS JUICY AND WHOLLY APPROPRIATE RESPONSES REALLY FELT GREAT WAS GOING TO WRITE IT ALL DOWN AND SEND A LETTER TO THE JOURNAL BUT MORNING CAME HAVE TO TEACH A CLASS AT 330 TODAY FIGURED NAH WHY BOTHER GOING TO GO AHEAD WITH THE REGULAR GAME PLAN AND GET IN A FEW HOURS OF FISHING BEFORE CLASS SEE RELATED LETTER LETTERS TO THE EDITOR TEACHING THE FACTS AS I SEE THEM WSJ OCT 15 1993 9310050073 YY93 MM10 9310150162 931015 TECHNOLOGY MICROSOFT TO START NEW SOFTWARE STRATEGY OFFENSIVE IS AIMED AT LOTUS AND BORLAND WHICH WON'T CONCEDE ITS GAINS BY DON CLARK STAFF REPORTER OF THE WALL STREET JOURNAL MICROSOFT CORP IS ABOUT TO LAUNCH A NEW OFFENSIVE IN THE BATTLE OVER SOFTWARE SUITES ON TUESDAY THE SOFTWARE GIANT WILL UNVEIL A LONGAWAITED OVERHAUL OF ITS POPULAR MICROSOFT OFFICE SUITE OF APPLICATION PROGRAMS IN AN EFFORT TO DEFEND ONE OF THE COMPANY'S MOST LUCRATIVE LINES THE SUITE STRATEGY HAS HELPED DRIVE DOWN PRICES IN THE INDUSTRY BY BUNDLING TOGETHER THE MOST POPULAR INDIVIDUAL PERSONALCOMPUTER PROGRAM FOR A FAR LOWER PRICE THAN THE TOTAL COST OF BUYING THE APPLICATIONS SEPARATELY THE COMPANY'S NEW MICROSOFT OFFICE VERSION 4 WITH A SUGGESTED RETAIL PRICE OF 750 IS EXPECTED TO CARRY STREET PRICES AS LOW AS 440 FOR A BUNDLE THAT INCLUDES NEW VERSIONS OF ITS MICROSOFT WORD WORD PROCESSING PROGRAM AND ITS EXCEL SPREADSHEET PLUS ITS POWERPOINT PRESENTATIONGRAPHICS PROGRAM MICROSOFT OFFICE REPRESENTS A TECHNOLOGY OFFENSIVE IN THE COMPANY'S SUITE WARS AGAINST LOTUS DEVELOPMENT CORP AND BORLAND INTERNATIONAL INC WHICH ARE PEDDLING BUNDLES OF THEIR OWN STARTING WITH ITS NEW VERSIONS OF WORD AND EXCEL MICROSOFT HAS BEGUN TO ADD A LEVEL OF INTELLIGENCE DESIGNED TO SOLVE SOME OF THE MOST COMMON PROBLEMS FACED BY PC USERS FOR EXAMPLE THE NEW WORD AUTOMATICALLY CORRECTS SPELLING ERRORS BEFORE THEY BECOME PART OF WORDPROCESSING DOCUMENTS THE PROGRAM CONTAINS A DICTIONARY OF COMMON MISSPELLINGS THAT KNOWS FOR INSTANCE TO INSERT THE WHEN THE USER TYPES TEH INDIVIDUAL USERS' FREQUENTLY MISSPELLED WORDS CAN BE ADDED IT'S SOFTWARE THAT ADAPTS SAID PETE HIGGINS MICROSOFT'S SENIOR VICE PRESIDENT OF DESKTOP APPLICATIONS IT'S LIKE A GLOVE THAT FITS BETTER AND BETTER OVER TIME THE NEW OFFICE ALSO REPRESENTS A MAJOR EFFORT TO MAKE SEPARATE PROGRAMS WORK TOGETHER BETTER SO THAT USERS CAN CONCENTRATE ON THE DOCUMENT THEY ARE CREATING RATHER THAN WHICH PROGRAM THEY ARE USING A SPREADSHEET CHART THAT HAS BEEN MOVED INTO A WORDPROCESSING DOCUMENT CAN BE UPDATED WITH NEW INFORMATION WITHOUT LEAVING THE WORD PROCESSOR THE INTEGRATION IMPROVEMENT COMES FROM OBJECT LINKING AND EMBEDDING 20 THE LATEST VERSION OF A TECHNOLOGY THAT MICROSOFT IS TRYING TO MAKE STANDARD IN THE INDUSTRY MICROSOFT'S RIVALS AREN'T CONCEDING THAT THE NEW SUITE HAS MAJOR TECHNOLOGICAL ADVANTAGES ROBERT WEILER A LOTUS SENIOR VICE PRESIDENT INSISTS THAT MICROSOFT IS RESPONDING TO THE TIGHT INTEGRATION OF ITS OWN PRODUCTS THAT'S THE POSITION WE HAVE OWNED IN THE LAST YEAR MR WEILER SAID NOTING THAT OTHER COMPANIES WILL ALSO BE USING THE OLE 20 TECHNOLOGY WITHIN A YEAR PHILIPPE KAHN BORLAND'S CHIEF EXECUTIVE OFFICER ARGUED THAT MANY CUSTOMERS PREFER TO BUY BESTOFBREED PRODUCTS OVER A SUITE EVEN IF A SUITE IS WELLINTEGRATED BUT MR KAHN ADMITS THAT SUITES HAVE HAD A MAJOR IMPACT ON PRICING AND WERE A FACTOR IN BORLAND'S MOVE TO BRING OUT ITS NEW QUATTRO PRO FOR WINDOWS SPREADSHEET PROGRAM AT AN INTRODUCTORY PRICE OF 49 MICROSOFT HAS BEEN WAGING THIS INCREDIBLE PRICE WAR ON THE INDUSTRY BY FOCUSING EVERYBODY ON SUITES MR KAHN SAID WHAT WE HAVE DONE IS TO REINVENT THIS STANDALONE BESTOFBREED PRODUCT BY BEING VERY AGGRESSIVE ON PRICE HOWEVER IT'S HARD TO ARGUE WITH MICROSOFT'S SUCCESS WITH SUITES THUS FAR MARY CONTI LOFFREDO AN ANALYST WITH INTERNATIONAL DATA CORP ESTIMATES THAT MICROSOFT OFFICE COMMANDS 77 OF THE SUITE MARKET COMPARED WITH LOTUS'S 18 SHARE AND 5 FOR BORLAND WHICH HAS DEVELOPED A BUNDLED PACKAGE WITH WORDPERFECT CORP WILLIAM GATES MICROSOFT'S CHIEF EXECUTIVE OFFICER ESTIMATED THAT THE COMPANY HAD ABOUT 10 OF THE SPREADSHEET MARKET AND 15 OF THE WORDPROCESSING MARKET BEFORE ITS WINDOWS OPERATING SYSTEM BEGAN TO TAKE OFF IN 1989 PARTLY BECAUSE OF SUITES THE COMPANY HAS NOW GONE TO ROUGHLY 40 OF EACH CATEGORY THAT'S THE LARGEST INCREASE IN MARKET SHARE THAT ANYONE HAS EVER EXPERIENCED IN PC SOFTWARE MR GATES SAID THE NEW MICROSOFT OFFICE WILL BE RELEASED IN STAGES THE NEW VERSION OF WORD WORD 60 WILL BE IN STORES BY NOV 1 AND THE UPDATES OF EXCEL AND POWERPOINT WILL BE SHIPPING BY THE BEGINNING OF NEXT YEAR MICROSOFT'S MR HIGGINS SAID CUSTOMERS WHO BUY BEFORE THEN WILL GET A COUPON ALLOWING THEM TO UPGRADE TO THE NEW APPLICATIONS AT NO CHARGE MICROSOFT OFFICE STANDARD WITH THREE APPLICATIONS INCLUDED WILL CARRY A SUGGESTED RETAIL PRICE OF 259 FOR EXISTING USERS OF THOSE PRODUCTS THROUGH FEB 1 USERS OF COMPETING PROGRAMS CAN BUY THE BUNDLE FOR 299 MICROSOFT OFFICE PROFESSIONAL WHICH ADDS THE ACCESS DATABASE AND THE COMMUNICATIONS PROGRAM MICROSOFT MAIL IS PRICED AT 899 THE TIGHTER INTEGRATION IN THE NEW OFFICE INCLUDES COMMON MENUS AND COMMANDS AMONG THE APPLICATION PROGRAMS AND THE ABILITY TO MOVE INFORMATION BETWEEN THEM BY SWIFTLY DRAGGING IT OVER USING A MOUSEPOINTING DEVICE 9310150161 931015 SMALL BUSINESS A SPECIAL REPORT FIRST STEPS WORDS FROM THE WISE ADVICE ABOUT STARTING A BUSINESS IS MORE PLENTIFUL THAN EVER BUT NONE OF IT IS RIGHT FOR EVERYONE BY MICHAEL SELZ MICHAEL CONLIN HAS SOME ADVICE FOR PROSPECTIVE BUSINESS OWNERS GET ALL THE ADVICE YOU CAN HE DID BEFORE FORMING INNOVATIVE SOFTWARE SYSTEMS INC A CUSTOMSOFTWARE DEVELOPER IN ANN ARBOR MICH MR CONLIN SPOKE WITH ACCOUNTANTS LAWYERS AND FELLOW ENTREPRENEURS AS WELL AS WITH THE LOCAL CHAMBER OF COMMERCE AND THE SERVICE CORPS OF RETIRED EXECUTIVES HE CONTACTED THE SMALL BUSINESS ADMINISTRATION HE ALSO ATTENDED ENTERPRISE FORUMS AND MEETINGS OF THE MICHIGAN TECHNOLOGY COUNCIL A BUSINESSASSISTANCE NETWORK REPRESENTING GOVERNMENT INDUSTRY AND ACADEMIA I WAS LOOKING FOR PEOPLE WHO WERE KNOWLEDGEABLE STRAIGHTFORWARD AND HAD EXPERIENCE WORKING WITH SMALL BUSINESSES SAYS MR CONLIN WHO STARTED INNOVATIVE SOFTWARE IN JANUARY AFTER CONSULTING WITH ABOUT THREE DOZEN PEOPLE OVER THREE YEARS HE ADDS IT WAS CLEAR THERE WASN'T ONE INDIVIDUAL WHO COULD ANSWER ALL THE QUESTIONS I HAD NO ONE COULD COVER ALL THE BASES FORTUNATELY FOR PEOPLE PREPARING TO LAUNCH THEIR OWN COMPANIES ADVICE FOR STARTING A BUSINESS IS AVAILABLE VIRTUALLY EVERYWHERE MORE THAN 1000 OF THE 1400 CHAMBERS OF COMMERCE REPRESENTED BY THE AMERICAN CHAMBER OF COMMERCE EXECUTIVES OFFER SUCH COUNSELING NEARLY 500 COLLEGES UNIVERSITIES AND VOCATIONALTECHNICAL SCHOOLS OFFER SOME 800 COURSES IN SMALLBUSINESS OWNERSHIP AND ENTREPRENEURSHIP AND THE NUMBER OF SMALLBUSINESS EXPERTS LISTED IN THE 199192 DIRECTORY OF THE INSTITUTE OF MANAGEMENT CONSULTANTS IS NEARLY FOUR TIMES THE TOTAL IN THE 198889 EDITION 187 NAMES UP FROM 48 BUT THE PROLIFERATION OF ADVISERS IS ALSO UNFORTUNATE FOR WOULDBE ENTREPRENEURS THE TASK OF SEEKING ADVICE HAS BECOME MORE HAZARDOUS THAN EVER SAYS ROBERT BERNIER STATE DIRECTOR OF THE NEBRASKA BUSINESS DEVELOPMENT CENTER IN OMAHA FOR INSTANCE LITTLE MORE THAN 5 OF THE NATION'S 800000 LAWYERS ARE QUALIFIED TO COUNSEL A PROSPECTIVE SMALLBUSINESS OWNER ESTIMATES FRED STEINGOLD AN ANN ARBOR MICH ATTORNEY WHO SPECIALIZES IN SMALL FIRMS IT'S IMPORTANT TO HAVE A LAWYER WHO'S MORE THAN A TECHNICIAN MR STEINGOLD SAYS THERE ARE SOME LAWYERS LIKE MYSELF WHO LIKE WORKING WITH ENTREPRENEURS AND LIKE THE EXCITEMENT OF BEING AT THE VERY BEGINNING OF A VENTURE PICK AN ADVISER LIKE YOU PICK YOUR DOCTOR WARNS MARGE LOVERO PRESIDENT OF THE ENTREPRENEURIAL CENTER A PRIVATE NONPROFIT GROUP IN PURCHASE NY THAT ASSISTS EMERGING AND ESTABLISHED SMALL BUSINESSES YOU HAVE TO DO A LOT OF SHOPPING AND RELATIONSHIP BUILDING BECAUSE THERE ARE A LOT OF CHARLATANS OUT THERE THE CHOICE IS CRUCIAL FINDING THE RIGHT EXPERTS IN BUSINESS PLANNING LAW MARKETING OPERATIONS AND FINANCE CAN HELP AN ENTREPRENEUR AVOID FATAL MISTAKES LATER A SKILLED CONSULTANT MIGHT EVEN PERSUADE AN ILLPREPARED PERSON TO FORGET THE WHOLE IDEA THE BEST SMALLBUSINESS ADVISERS CAN TELL YOU WITH 70 TO 80 ACCURACY THE PROBLEMS THAT YOU'RE GOING TO HIT AND NEED TO PREPARE FOR SAYS JERRELL ATKINSON MANAGING DIRECTOR OF ATKINSON & CO AN ALBUQUERQUE NM ACCOUNTING FIRM ADDS ROGER MELANSON PRESIDENT OF UP N RUNNING INC A NASHUA NH SMALLBUSINESS CONSULTANT THE MOST IMPORTANT THING I CAN PROVIDE IS PLANNING WHICH NEWBUSINESS OWNERS RARELY DO IF THEY PLAN THEY'RE LESS LIKELY TO FAIL OR THEY WON'T START THE BUSINESS AT ALL WHICH IS GOOD TOO FOR ENTREPRENEURS SEEKING ADVICE SUCH GOVERNMENT PROGRAMS AS THE SBA'S NATIONWIDE NETWORK OF SMALL BUSINESS DEVELOPMENT CENTERS ARE HANDY STARTING POINTS MS LOVERO SAYS THEY OFFER LOTS OF BASIC INFORMATION ABOUT FORMING A COMPANY AT NO CHARGE ULTIMATELY THOUGH WOULDBE ENTREPRENEURS SHOULD SEEK THE ADVICE OF ENTREPRENEURS WHO HAVE TRACK RECORDS AND ARE SPEAKING FROM FIRSTHAND KNOWLEDGE MS LOVERO ADVISES ALL THESE PEOPLE WHO ARE SETTING THEMSELVES UP AS CONSULTANTS ADVISERS AND BUSINESS STRATEGISTS PACKAGING THEMSELVES AS EXPERTS CANNOT IN GOOD CONSCIENCE TELL A SMALLBUSINESS OWNER WHAT HE NEEDS TO DO UNTIL THEY'VE BEEN THROUGH IT THEMSELVES VERONIKA CARELLA FOUND SUCH VETERANS AT MS LOVERO'S ENTREPRENEURIAL CENTER IT CURRENTLY OFFERS FIVE SMALLBUSINESS COURSES INCLUDING A 10WEEK PROGRAM CALLED WHAT EVERY ENTREPRENEUR NEEDS TO KNOW ALL CLASSES SAYS MS LOVERO ARE TAUGHT BY INSTRUCTORS WHO HAVE BEEN THERE MS CARELLA TOOK TWO 10WEEK COURSES IN 1989 AND 1990 AFTER LOSING HER JOB AS MANAGER OF INFORMATION SECURITY AT PEPSICO INC'S PURCHASE HEADQUARTERS WHERE SHE HAD WORKED FOR MORE THAN EIGHT YEARS AT THE TIME SHE HAD DONE SOME RESEARCH ON HER OWN AND KNEW SHE WANTED TO START A WHOLESALE FOODDISTRIBUTION BUSINESS BUT SHE DIDN'T KNOW HOW THE CENTER'S INSTRUCTORS HELPED HER DEVELOP HER BUSINESS PLAN THEY ALSO REFERRED HER TO AN ACCOUNTANT AND INSURANCE AGENT IN 1990 SHE OPENED BOCAR DISTRIBUTION SERVICES INC IN LARCHMONT NY THE COMPANY WHICH SUPPLIES LOCAL COUNTRY CLUBS RESTAURANTS CATERERS AND INSTITUTIONS NOW HAS ANNUAL SALES OF ABOUT 500000 WITHOUT THE COURSE I DON'T THINK I COULD HAVE STARTED THE BUSINESS AS QUICKLY OR AS CONFIDENTLY SHE SAYS NEBRASKA TO MEMPHIS INSTEAD OF TAKING A COURSE ANN KELLEHER SOUGHT THE ADVICE OF EXPERIENCED ENTREPRENEURS ON HER OWN IN 1990 SHE AND A PARTNER WHO WORKED TOGETHER AT AN OUTPLACEMENTCONSULTING FIRM BEGAN TALKING ABOUT STARTING A TEMPORARYHELP FIRM FOR OLDER PEOPLE WHEN THEY READ IN A NEWSLETTER ABOUT THE OWNER OF A SIMILAR BUSINESS IN TENNESSEE THEY DROVE FROM NEBRASKA TO MEMPHIS TO MEET HIM MS KELLEHER MET WITH ANOTHER OWNER OF A TEMPORARYHELP FIRM IN LOS ANGELES TO TAILOR THEIR BUSINESS PLAN FOR THE OMAHA MARKET THE WOMEN THEN TALKED WITH THE FORMER OWNER OF A LOCAL TEMPORARYHELP FIRM WITH EMPLOYEES OF ALL AGES BETWEEN THE MEETINGS HELP FROM THE LOCAL SMALL BUSINESS DEVELOPMENT CENTER AND SOME MARKET RESEARCH OF THEIR OWN WE GOT ALL KINDS OF PRACTICAL ADVICE MS KELLEHER SAYS AND WE DIDN'T SEE ANY RED FLAGS THAT MIGHT HAVE DISCOURAGED US FROM GOING FORWARD IN EARLY 1991 MS KELLEHER COFOUNDED JAKS ENTERPRISES INC THE PARENT OF MATURE RESOURCES WHICH SUPPLIES TEMPORARY WORKERS AGE 40 AND OLDER TODAY THE COMPANY REPRESENTS SOME 700 TEMPORARY WORKERS AND HAS ANNUAL SALES OF MORE THAN 500000 SHE SAYS BY THE TIME THE COMPANY WAS FORMED ITS GROUP OF PARTNERS HAD GROWN TO FOUR WOMEN ONE OF THE TWO NEW OWNERS WAS AN ACCOUNTANT MS KELLEHER KNEW AND HAD APPROACHED FOR HELP IN RAISING FINANCING THE ACCOUNTANT LIKED THE BUSINESS PLAN SO MUCH THAT SHE BECAME A PARTOWNER HER HUSBAND WHO WORKED FOR INTERNATIONAL BUSINESS MACHINES CORP SET UP THE COMPANY'S COMPUTER SYSTEM LIKE THE ACCOUNTANT HE DID THE WORK WITHOUT CHARGE TAPPING THE EXPERTISE OF PROFESSIONAL FRIENDS WHO OFTEN SHARE YOUR ENTHUSIASM PROVED TO BE A VALUABLE SOURCE OF HELP MS KELLEHER SAYS I'D NEVER ADVISE ANYONE TO JUST GO THROUGH THE PHONE BOOK AND CALL PEOPLE COLD MR SELZ IS A STAFF REPORTER IN THE WALL STREET JOURNAL'S NEW YORK BUREAU 9310150160 931015 SMALL BUSINESS A SPECIAL REPORT ESSAY ALONE TOGETHER THE KEY TO RUNNING A SUCCESSFUL SMALL BUSINESS PRETEND IT'S NOT SO SMALL BY DAVID BLUM CONSOLIDATED WORD PATTERNS INC A NEW YORK PRODUCER OF BOOKS AND ARTICLES IS ONE OF AMERICA'S BESTRUN SMALL BUSINESSES AND PRIDES ITSELF ON ITS HAPPY CONTENTED STAFF QUITE FRANKLY IT CAN BE SAID THAT THE WORKERS LOVE THE BOSS HE'S GENEROUS THOUGHTFUL AND NEVER TOO CAUGHT UP IN HIS WORK TO CHUCKLE HEARTILY AT THE LATEST JOKES OVER BY THE WATER COOLER I HEAR WHAT YOU'RE SAYING NO WAY NOT POSSIBLE NOBODY CAN RUN A SMALL BUSINESS THESE DAYS AND EXPECT SUCH BLIND DEVOTION FROM HIS EMPLOYEES YOU ARE INCORRECT FOR THE LAST EIGHT YEARS I HAVE SERVED PROUDLY AS CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF CWP WHERE EMPLOYEE DEVOTION BEGAN AT AN ALLTIME HIGH AND HAS STAYED THERE THROUGHOUT MY TENURE OF COURSE IT HAS HELPED QUITE A BIT THAT I AM THE ONLY EMPLOYEE TO BE SURE BEING YOUR OWN BOSS ISN'T AS EASY AT IT LOOKS SINCE WE FIRST OPENED OUR DOORS IN NOVEMBER OF 1982 INCOME STATEMENTS HAVE REFLECTED THE TURBULENCE OF THE TIMES SURE THE HIGHFLYING 1980S WERE BOOM YEARS REVENUE WAS UP PROFITS SOARED AND THE P/E RATIO THAT IS THE RATIO OF THE NUMBER OF PAGES WRITTEN TO THE NUMBER OF EMERGENCY TRIPS TO THE KITCHEN AND BATHROOM ROSE STEADILY IN THOSE DAYS I DIDN'T EVEN BOTHER TO STEAL PENS FROM MY FRIENDS' SUPPLY CLOSETS AH THE GLORY YEARS CHRISTMAS PARTIES WENT UNTIL FOUR OR FIVE IN THE MORNING AND SOMETIMES I'D GO THROUGH AN ENTIRE BAG OF TORTILLA CHIPS AND BOTTLE OF PACE PICANTE SAUCE EXTRA HOT FOR THE TIMES WE WERE LIVING IN NOW IT'S THE LEAN MEAN 1990S TIME FOR A WHOLE NEW CORPORATE DIRECTION BUT I'M GETTING AHEAD OF MYSELF LET'S GO BACK TO THE BEGINNING ONLY THEN CAN I EXPLAIN HOW I'VE BEEN ABLE TO HAVE THE FULL EXPERIENCE OF WORKING IN CORPORATE AMERICA WHILE ALMOST NEVER HAVING TO TAKE OFF MY PAJAMAS CWP A DIVERSIFIED PROSE MANUFACTURER OPENED FOR BUSINESS ON A COLD NOVEMBER MORNING IN 1982 IN THOSE DAYS MY COMMUTE WAS APPROXIMATELY 12 SECONDS ROUGHLY THE TIME IT TOOK ME TO WALK FROM MY BED TO MY KITCHEN TABLE SOMETIMES IF I HAD A PRESENTATION TO MAKE THAT DAY I'D STOP ON MY WAY TO WORK TO PUT ON A PAIR OF PANTS MORNING STAFF MEETINGS OFTEN STARTED LATE OWING TO THE SLOWNESS OF MY TOASTER WHICH WAS A TRADITIONAL TWOSLICE MACHINE UPGRADING TECHNOLOGY IS CRUCIAL TO THE SUCCESS OF ANY SMALL BUSINESS EVENTUALLY I WENT FOR A BLACK & DECKER TOASTER OVEN AN ACT REFLECTED LATER IN A COUPLE OF SPIFFY TAXLOSS CARRYFORWARDS OCCASIONALLY IF I WAS PARTICULARLY LATE I FOUND IT NECESSARY TO DOCK MY OWN PAY JUST TO MAKE SURE I WAS GETTING THE MESSAGE IT'S AN ACTION I RECOMMEND TO ALL CHIEF EXECUTIVES AS A WAY OF KEEPING YOURSELF IN LINE ONE KEY TO PERSONAL HAPPINESS AT THE HOME OFFICE IS A STRONG HEALTHY RELATIONSHIP WITH YOUR ANSWERING MACHINE MINE IS A PHONEMATE 9750 NAMED LURLEEN ANSWERING MACHINES CAN GET A LITTLE FEISTY ESPECIALLY IF YOU'RE REMOTE WITH THEM SO I RECOMMEND TAKING YOUR MACHINE TO LUNCH ONCE IN A WHILE JUST TO SHOW HER OR HIM HOW YOU FEEL THE SAME THING WITH YOUR PHONES THEY CAN GET ORNERY ESPECIALLY IF THEY FEEL YOU'RE ALWAYS PUSHING THEIR BUTTONS A BOSS CAN DO THAT YOU KNOW AND AS FOR COPIERS WELL THEY'RE A BIT OF A PAIN BUT IN THOSE LONELY MOMENTS AFTER WORK I SOMETIMES CALL THE KEY OPERATOR AND WE TALK ABOUT EVERY LITTLE THING LET'S GET DOWN TO THE BREADANDBUTTER ISSUES OF ANY COMPANY SALARY AND BENEFITS SETTING YOUR OWN SALARY IS OFTEN ONE OF THE MOST DIFFICULT STEPS IN A ONEPERSON BUSINESS THE NEGOTIATION IS COMPLEX AND I WOULD STRONGLY URGE YOU TO HAVE SUCH DISCUSSIONS IN PRIVATE WHERE OUTSIDERS WON'T WHISPER AND POINT PERSONALLY I RECOMMEND GETTING A NICE TABLETOP MIRROR AND SITTING DOWN WITH YOURSELF OVER A STIFF BLOODY MARY OR TWO AFTER WORK AND TALKING THINGS OVER RECOGNIZE THAT THERE HAS TO BE GIVE AND TAKE IN ANY GOOD RELATIONSHIP EVEN ONE WITH YOURSELF DON'T MAKE UNREASONABLE DEMANDS YOU'LL ONLY BE MAD AT YOURSELF LATER HERE ARE A FEW OTHER POLICY CONSIDERATIONS FOR THE SMART SMALLBUSINESS EXECUTIVE WHO WANTS TO RUN AN EFFICIENT HOME OFFICE VACATIONS MAKE SURE YOU LEAVE A CLEAN DESK THERE'S NOTHING LIKE COMING BACK AFTER A LONG SUCCESSFUL VACATION ONLY TO BE GREETED BY A MOUNTAIN OF PAPERWORK PARTICULARLY IF YOU HAVE TO CLEAR THE OVERFLOW OF PAPERWORK OFF YOUR BED IN ORDER TO GET TO SLEEP FEDERAL EXPRESS CRUCIAL THE FED EX PERSON IS AN IMPORTANT CONTACT IN THE FASTPACED WORLD OF THE SOLO PRACTITIONER IF YOU DEVELOP A STRONG RAPPORT WITH HIM YOU MAY BE ABLE TO USE HIM FOR CERTAIN FREELANCE ASSIGNMENTS SUCH AS CARRYING OUT YOUR TRASH ON HIS WAY BACK TO THE TRUCK TELEVISION LET'S FACE IT TVWATCHING IS A FACT OF LIFE FOR THE RESIDENCEBASED SMALLBUSINESS EXECUTIVE THE PRIMARY QUESTION IS HOW MUCH IS TOO MUCH I SUGGEST THE FOLLOWING BASIC RULES TO GOVERN TVWATCHING DURING BUSINESS HOURS WHILE YOU SHOULD ALLOW YOURSELF THE FLEXIBILITY TO WATCH THE ROCKFORD FILES WHENEVER POSSIBLE BE CAREFUL NOT TO DEVELOP A SIMILAR DEPENDENCE ON MRS COLUMBO CONSIDER ANY WATCHING OF DESIGNING WOMEN TO BE A SIGN OF CORPORATE DISTRESS ON THE OTHER HAND THE OCCASIONAL CHARLIE'S ANGELS IS ACCEPTABLE IN THAT YOU WILL LEARN SOME EXCELLENT MANAGEMENT TECHNIQUES FROM BOSLEY WHO RAN A TIGHT SHIP SADLY THOUGH IT SOMETIMES BECOMES NECESSARY TO REALIZE THAT PROBLEMS DEVELOP EVEN IN THE MOST SOLITARY OF SITUATIONS AN EXECUTIVE FINDS THAT HE IS NOT PERFORMING UP TO HIS OWN EXACTING STANDARDS HE CHECKS PRODUCTIVITY REPORTS AND FINDS THAT HE IS ACCOMPLISHING LITTLE HE REVIEWS PERFORMANCE SHEETS FLOW CHARTS AND QUARTERLY REPORTS ONLY TO DISCOVER THAT HE HAS FAILED TO HEED REPEATED WARNINGS THUS IT BECOMES NECESSARY FOR A CHIEF EXECUTIVE TO DISMISS HIMSELF OBVIOUSLY THIS IS NOT A SIMPLE MATTER I JUST RECENTLY HAD TO TAKE THIS VERY ACTION DURING AN EARNINGS SLUMP BELIEVE ME LETTING YOURSELF GO IS NOT AS EASY AS IT SOUNDS FIRST I TOOK MYSELF TO LUNCH AN OUTOFTHEWAY TABLE AT A QUIET RESTAURANT IS PREFERRED IT CUTS DOWN ON THE EMBARRASSMENT LEVELS IF TEARS HAPPEN TO FLOW SMALL TALK IS POINTLESS IN A SITUATION LIKE THIS SINCE THE EMPLOYEE KNOWS WHAT'S COMING IT'S BEST TO CUT TO THE CHASE IN THIS INSTANCE I SIMPLY TOOK OUT MY WALLET REMOVED MY CORPORATE CREDIT CARDS AND IDENTIFICATION ASKED THE WAITER FOR A SCISSORS AND SLICED THEM IN TWO I THEN TOOK OUT A PAD OF PAPER AND WROTE MYSELF A GLOWING LETTER OF REFERENCE AND MADE OUT A LIST OF POSSIBLE JOBS IN RELATED FIELDS AND THE NUMBERS OF FRIENDS I COULD CONTACT FOR HELP THANKFULLY I ALSO GAVE MYSELF SEVERAL MONTHS TO STAY WITH THE COMPANY WHILE LOOKING FOR A JOB AFTER ALL IT'S EASIER TO FIND A JOB WHEN YOU STILL HAVE ONE FEELING SAD I ORDERED A STIFF DRINK TO BE PERFECTLY HONEST I THOUGHT I HAD BEEN A LITTLE CALLOUS WITH MYSELF AND THERE'S NOTHING LIKE A MARTINI TO CUT THE HURT IN HALF BY THE TIME LUNCH WAS OVER I WAS SLOSHED I HAD NEVER BEEN FIRED BEFORE AND AS I STEPPED OUT ON THE SIDEWALK INTO THE BRIGHT MIDDAY SUN I FELT A SENSE OF RELIEF THAT I HAD LIBERATED MYSELF FROM THE SHACKLES OF EMPLOYMENT I WENT BACK TO MY OFFICE CLEANED UP MY DESK FLIPPED ON THE TV AND WATCHED A LITTLE ROCKFORD HE WAS HIS OWN BOSS TOO AND A DAMN GOOD ONE MR BLUM IS A NEW YORK CITY WRITER 9310150159 931015 FOREIGN EXCHANGE CONTINUED REFUSALS BY FRANCE BELGIUM TO CUT RATES HEIGHTEN STRAIN IN ERM BY GLENN WHITNEY AND MARTIN DU BOIS STAFF REPORTERS OF THE WALL STREET JOURNAL PRESSURE INTENSIFIED IN THE EUROPEAN MONETARY SYSTEM AS FOREIGN EXCHANGE TRADERS ONCE AGAIN TOOK AIM AT THE FRENCH AND BELGIAN CURRENCIES ANALYSTS SAID THE STRAINS ARE LIKELY TO GROW AS LONG AS THE TWO COUNTRIES CONTINUE REFUSING TO CUT INTEREST RATES MOVES THAT LIKELY WOULD HELP REVIVE THEIR MORIBUND ECONOMIES MEANWHILE SPANISH AUTHORITIES BUCKED THE TREND CUTTING A KEY RATE TO 95 FROM 10 THE MOVE ACTUALLY STRENGTHENED THE PESETA WITH THE MARK FINISHING AT 8111 PESETAS DOWN FROM 8140 PESETAS WEDNESDAY TRADERS SAID THE REACTION TO THE CUT WAS LARGELY POSITIVE BECAUSE IT IS SEEN AS AIDING SPAIN'S ECONOMIC RECOVERY WE'RE STILL SEEING THE AFTERSHOCKS OF THE EVENTS LAST SUMMER SAID MARK CLIFFE CHIEF ECONOMIST AT NOMURA INTERNATIONAL IN LONDON EVERYONE EXPECTED QUICK CUTS IN RATES FROM THE FRENCH AND OTHERS NOW THAT HAS HAPPENED IT'S BEGINNING TO DEVELOP INTO A BATTLE OF WILLS BETWEEN THE GOVERNMENT AND MARKET THE MARKETS QUESTION THE CREDIBILITY OF THE CURRENT MONETARY POLICIES BOTH THE FRENCH AND BELGIAN FRANCS ENDED THE DAY NEAR THEIR RECORD LOWS AGAINST THE MARK WHICH WERE SET SHORTLY AFTER THE EXCHANGE RATE MECHANISM'S FLUCTUATION BANDS WERE RADICALLY WIDENED AT THE BEGINNING OF AUGUST THE MARK WAS QUOTED LATE AT 35330 FRANCS UP FROM 35295 YESTERDAY AND AT 2196 BELGIAN FRANCS UP FROM 2188 BELGIAN FRANCS YESTERDAY THE BELGIAN NATIONAL BANK WAS FORCED TO INTERVENE SEVERAL TIMES SELLING MARKS FOR BELGIAN FRANCS THE BANK OF FRANCE WASN'T SEEN INTERVENING TO SUPPORT ITS CURRENCY BUT AUTHORITIES SENT A CLEAR SIGNAL TO THE MARKET BY LEAVING ITS KEY INTERVENTION RATE UNCHANGED AT 675 THE US DOLLAR GAINED MARGINALLY AMID THE TURBULENCE IN EUROPE WITH QUOTES LATE IN NEW YORK AT 16125 MARKS FROM 16015 MARKS WEDNESDAY THE DOLLAR TRADED AT 10735 YEN FROM 10595 YEN WEDNESDAY THE DOLLAR ALSO TRADED AT 15155 POUNDS FROM 15230 POUNDS WEDNESDAY ABOUT NOON ON FRIDAY IN TOKYO THE DOLLAR WAS TRADING AT 10715 YEN AND AT 16133 MARKS MUCH OF THE TROUBLES IN THE ERM CAN BE ATTRIBUTED TO A WIDESPREAD BELIEF THAT THE BUNDESBANK IS IN NO HURRY TO CUT INTEREST RATES THE MAIN TOPIC IN THE MARKET IS THE SAME AS IT HAS BEEN FOR MONTHS SAID KLAUS HOLSCHUH AN ECONOMIST AT COMMERZBANK IN FRANKFURT EVERYONE IS WONDERING IF THE BUNDESBANK CUTS WILL COME QUICK ENOUGH TO HELP THE REGIONAL ECONOMIES MR HOLSCHUH THINKS THE GERMAN CENTRAL BANK PROBABLY WILL STICK TO ITS RECENT PATTERN OF A ONEHALF POINT REDUCTION IN THE DISCOUNT RATE EVERY 10 WEEKS MEANING THE NEXT CUT IS ABOUT A MONTH AWAY PRESSURE ON THE FRENCH FRANC INCREASED AFTER ECONOMICS MINISTER EDMOND ALPHANDERY MENTIONED IN A SPEECH TO THE NATIONAL ASSEMBLY TUESDAY THAT THE WEAKNESS OF THE FRANC SHOULD HELP GROWTH IN 1994 STILL MOST ANALYSTS DOUBTED FRENCH AUTHORITIES WILL SACRIFICE CLOSE TIES WITH THE MARK BY UNILATERALLY CUTTING RATES SHARPLY THERE IS STILL A LOT OF POLITICAL PRESTIGE ON KEEPING THE FRANC UP SAID PAUL O'BRIEN AN ECONOMIST AT JP MORGAN IN PARIS TROUBLES FOR THE BELGIAN FRANC APPEAR TO BE MORE PERNICIOUS HOWEVER THE LATEST ATTACK ON THE BELGIAN CURRENCY ECONOMISTS AND MARKET ANALYSTS IN THE COUNTRY SAID STEMS FROM GROWING DOUBTS THAT THE CENTRAL BANK CAN LOWER SHORTTERM INTEREST RATES WITHOUT SEEING THE FRANC FALL EVEN FURTHER AND BECAUSE BELGIUM IS A SMALL OPEN ECONOMY A CURRENCY FREE FALL ENTAILS SERIOUS INFLATION RISKS UNCERTAINTY AND POLITICAL INFIGHTING OVER A MUCHHERALDED AUSTERITY AND EMPLOYMENT PACKAGE MEANWHILE HAVE ADDED TO NEGATIVE INVESTOR SENTIMENT IT'S UNCLEAR WHAT THE CENTRAL BANK IS UP TO SAID DIEDERIK THIBAUT BELGIAN MARKET ECONOMIST AT KREDIETBANK NV WHILE OFFICIALLY STICKING TO ITS STRONGFRANC GOAL THERE ARE INDICATIONS OF SOFTENING IN THE MONETARY POLICY A SPOKESMAN FOR THE FINANCE MINISTRY DECLINED TO COMMENT BUT THE CENTRAL BANK SPOKESMAN DENIED MARKET SPECULATION THAT BELGIUM MIGHT REINTRODUCE CAPITAL CONTROLS UNDER THE FORM OF A TWOTIERED EXCHANGE RATE WE'RE NO LONGER IN A POSITION TO CONTROL THE EXCHANGE RATE HE SAID 9310150158 931015 BIOMERICA IMCERA UNIT IN PACT BIOMERICA INC SAID IT SIGNED AN AGREEMENT WITH HEMOCUE INTRESSENTER AB TO SUPPLY CONTROLS AND CALIBRATORS FOR USE IN HEMOCUE INSTRUMENTS MEASURING HEMOGLOBIN LEVELS IN THE BLOOD THE DEVICES MANUFACTURED BY NEWPORT BAECH CALIFBASED BIOMERICA WILL BE USED TO CALIBRATE THE HEMOGLOBIN INSTRUMENTS AND FOR QUALITY CONTROL OF THE INSTRUMENTS IT SAID HEMOCUE IS A UNIT OF IMCERA GROUP INC'S MALLINCKRODT MEDICAL IN OVERTHECOUNTER TRADING YESTERDAY BIOMERICA CLOSED AT 10625 UP 625 CENTS OR 63 IMCERA GROUP SHARES GAINED 1125 TO CLOSE AT 34375 IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE 9310150157 931015 SMALL BUSINESS A SPECIAL REPORT INTERVIEW SAHLMAN SAYS WILLIAM SAHLMAN A TEACHER CRITIC AND BUSINESSMAN TALKS ABOUT WHAT IT TAKES TO START A SMALL BUSINESS THESE DAYS WILLIAM SAHLMAN IS ONE OF THE NATION'S FOREMOST SCHOLARS ON VENTURE CAPITAL AND ENTREPRENEURSHIP AS WELL AS ONE OF THE MOST CONTROVERSIAL IN A 1984 ARTICLE FOR EXAMPLE HE WAS ONE OF THE FIRST TO CRITICIZE VENTURE CAPITALISTS THE CREATION OF 43 WINCHESTER DISKDRIVE COMPANIES EACH ASPIRING TO GET A 10 MARKET SHARE WAS MYOPIC HE WROTE IN A 1990 ARTICLE ENTITLED WHY SANE PEOPLE SHOULDN'T SERVE ON PUBLIC BOARDS HE DESCRIBED THE LITIGIOUSNESS THAT MAKES IT TOO RISKY TO SERVE ON THE BOARDS OF PUBLIC COMPANIES A 1972 GRADUATE OF PRINCETON UNIVERSITY THE 42YEAROLD MR SAHLMAN IS NOW PROFESSOR OF BUSINESS ADMINISTRATION AT THE HARVARD BUSINESS SCHOOL WHERE HE TEACHES A COURSE ON ENTREPRENEURIAL FINANCE THAT IS ATTENDED BY MORE THAN 50 OF THE SCHOOL'S SECONDYEAR CLASS BUT MR SAHLMAN ISN'T SIMPLY AN OBSERVER AND CRITIC HE ALSO IS A DIRECTOR OF SEVERAL COMPANIES INCLUDING BUTCHER CO A 110YEAROLD MANUFACTURER OF INDUSTRIAL SANITARYSUPPLY GOODS AND COTTAGE SOFTWARE INC A WALTHAM MASS MAKER OF BUSINESS SOFTWARE MR SAHLMAN TALKED TO WALL STREET JOURNAL STAFF REPORTER UDAYAN GUPTA ABOUT WHAT IT TAKES TO START A SMALL BUSINESS THESE DAYS HERE ARE EXCERPTS FROM THE DISCUSSION THE WALL STREET JOURNAL IS THIS A GOOD TIME TO START A BUSINESS MR SAHLMAN THE ENVIRONMENT HAS SEVERAL POSITIVE AND NEGATIVE CHARACTERISTICS ON THE POSITIVE SIDE THIS IS A DYNAMIC ECONOMY THERE ARE ALWAYS SECTORS OF THE ECONOMY THAT PRESENT OPPORTUNITY I HEARD AN INTERESTING STORY ON THE RADIO THIS MORNING ABOUT THE IMPLICATIONS OF NEW FEDERAL REGULATIONS FOR NUTRITION LABELING IT TURNS OUT EVERYBODY HAS TO MEASURE FAT CONTENT IN ALL MANNER OF THINGS AND PUT IT ON LABELS THAT'S CREATED AN ENORMOUS OPPORTUNITY FOR PEOPLE IN THE TESTING BUSINESS AND IT HAS INCREASED OPPORTUNITY FOR PEOPLE IN THE LABELING AND PACKAGEDESIGN BUSINESS SO IN A DYNAMIC ECONOMY EVEN ONE WITH RELATIVELY MODEST GROWTH THERE ARE ALWAYS THESE CHANGES EITHER REGULATORY OR SOCIOLOGICAL OR TECHNOLOGICAL THAT MAKE IT POSSIBLE TO START NEW BUSINESSES TO MEET THOSE CHALLENGES I HAVE SOME CONCERNS ON THE NEGATIVE SIDE ONE RELATES TO BIG BUSINESS WHICH I THINK HAS GOTTEN MORE COMPETENT OVER THE PAST 10 YEARS BASICALLY YOU HAD COMPANIES THAT WERE SLEEPY AND SLOW TO REACT AND OVERSTAFFED THOSE COMPANIES HEARD THE WAKEUP CALL DOWNSIZED AND ARE MUCH MORE AGGRESSIVE AND OPPORTUNISTIC THAN THEY'VE EVER BEEN AND THAT SIMPLY MEANS THAT YOU CAN'T ASSUME THAT LARGE COMPANIES WILL BE UNCOMPETITIVE AS YOU COULD FOR MANY YEARS MORE DIFFICULT ARE THE NATURE OF COSTS IN THE ECONOMY ACTUALLY HIRING A FULLTIME EMPLOYEE HAS BECOME AN ALMOSTRISKY PROPOSITION INDEPENDENT OF WHETHER OR NOT THE BUSINESS IS GOING TO WORK OR INDEPENDENT OF WHETHER YOU'RE GOING TO GET THE MONEY THAT'S REQUIRED HIRING PEOPLE EXPOSES YOU TO ISSUES ABOUT HEALTHCARE COSTS DISABILITY UNEMPLOYMENT COMPENSATION AS WELL AS LAWSUITS WE STILL HAVE THIS SYSTEMIC PREDISPOSITION TO SUE OR TO USE 20/20 HINDSIGHT AND THAT MAKES IT SOMEWHAT RISKY TO GO INTO BUSINESS PER SE WSJ IS IT MORE RISKY THAN IN THE PAST MR SAHLMAN IT IS MUCH MORE RISKY THE COST AND RISK ASSOCIATED WITH ADDING PEOPLE TO A COMPANY IS HIGHER THAN IT HAS EVER BEEN ALL THAT MEANS IS THAT YOU HAVE TO REALLY BE CONVINCED ABOUT THE QUALITY OF THE OPPORTUNITY TO JUSTIFY GETTING IN YOU HAVE TO HAVE A BUSINESS FOR EXAMPLE THAT CAN AFFORD TO PAY PEOPLE OR TO INCUR COSTS AT A HIGHER LEVEL THAN WAS TRUE 10 OR 15 YEARS AGO ONE SERIOUS FLAW IN THE CURRENT ECONOMIC SYSTEM IS THE ABSENCE OF BANKS BANKS CAN MAKE A LOT MORE MONEY INVESTING IN LONGTERM TREASURY BONDS AND PAYING 2 ON DEPOSITS THAN THEY CAN ON A RISKADJUSTED BASIS BY LENDING TO SMALL BUSINESSES SO ALTHOUGH BANKS WILL ARGUE THAT THEY ARE INCREASINGLY AGGRESSIVE IN LENDING TO THE SMALLBUSINESS COMMUNITY THE FACT IS THEY'RE NOT AND THAT HAS IMPLICATIONS FOR WHETHER OR NOT IT MAKES SENSE TO START A BUSINESS BECAUSE OFTEN YOU'D LIKE TO BE ABLE TO RELY ON BANK CAPITAL WSJ WHAT BUSINESSES WOULD YOU START IF YOU WERE LOOKING MR SAHLMAN I THINK THE REAL ISSUE RELATES TO SCALE FOR EXAMPLE I CAN GET IN A LABORINTENSIVE BUSINESS BUT ONLY ONE THAT I ORGANIZE AS A NETWORK OF TEMPS AND INDEPENDENT CONTRACTORS WHERE I DON'T ASSUME RESPONSIBILITY FOR ALL OF THEIR COSTS WSJ CAN YOU GIVE ME AN EXAMPLE MR SAHLMAN WELL YOU MIGHT HAVE A BUSINESS TO HELP WITH THE ELDERLY WHERE YOU DO THINGS LIKE DRIVING PEOPLE AROUND OR PROVIDE SHOPPING SERVICES YOU COULD IMAGINE A TRUE CORPORATE FORM WHERE YOU TRY TO CREATE A NATIONWIDE LARGESCALE OPERATION WHERE YOU PAY PEOPLE APPROPRIATELY AND PAY ALL OF THE ASSOCIATED HEALTHCARE BENEFITS AND THE LIKE MORE LIKELY YOU COULD START IT ON A SMALLER SCALE BY STRINGING TOGETHER A GROUP OF PEOPLE WHO ARE EXPECTED E CARE OF THEIR OWN HEALTH COSTS AND BENEFITS I THINK THE TAX SYSTEM PARTICULARLY THE INCREASED SOCIAL SECURITY AND MEDICAID TAXES MAKE IT MORE COSTLY AND RISKY TO PUT PEOPLE DIRECTLY ON YOUR PAYROLL WSJ ARE YOU SUGGESTING THAT MAYBE IN THE LABORINTENSIVE SIDE BUSINESSES WE'RE LOOKING AT A WHOLE NEW ORGANIZATIONAL STRUCTURE MR SAHLMAN RIGHT THE MODEL OF A BUSINESS USED TO BE THIS IF YOU WERE GOING TO BE IN THE RETAIL OR MANUFACTURING BUSINESS YOU'D DO EVERYTHING YOU'D HAVE A MAIL ROOM YOU'D HAVE A WAREHOUSE YOU'D HAVE THIS YOU'D HAVE THAT WELL OPPORTUNITY INCREASINGLY HAS BEEN ASSOCIATED WITH OUTSOURCING THOSE SERVICES WSJ CAN SMALL COMPANIES ESPECIALLY IN A STARTUP MODE ACTUALLY AFFORD TO OUTSOURCE AS MUCH AS YOU SUGGEST MR SAHLMAN THEY CAN'T AFFORD NOT TO FOR ONE THING THE RISKS AND COSTS ASSOCIATED WITH DOING LOTS OF THINGS YOURSELF MAKE IT HARD TO DO ONE ATTRACTIVE POSSIBILITY IS TO PIGGYBACK ON EXISTING DISTRIBUTION SYSTEMS WHY REINVENT THE WHEEL WHY NOT TRY TO FIGURE OUT A WAY TO GET ON A FREIGHT TRAIN MOVING IN THE RIGHT DIRECTION THAT MAY MEAN YOU TAKE LESS MARGIN BUT IT ALSO MEANS YOU HAVE FEWER EMPLOYEES AND REQUIRE LESS CAPITAL WSJ THE STRUCTURE THAT YOU'RE DESCRIBING SEEMS TO SUGGEST THAT YOU CAN DO IT ANYWHERE BUT ARE THERE PLACES IN THE US WHERE IT MIGHT BE BETTER TO START A BUSINESS NOW THAN OTHERS MR SAHLMAN IT'S SORT OF A COUNTERCYCLICAL PHENOMENON LET ME FOCUS ON THE STATE I KNOW BEST MASSACHUSETTS THERE WAS A PRESUMPTION OF A MASSACHUSETTS MIRACLE SOME YEARS AGO WHEN WE HAD VERY LOW UNEMPLOYMENT AND VERY HIGH RATES OF ECONOMIC GROWTH THE PROBLEM WAS YOU COULDN'T HIRE ANYBODY HOUSING COSTS WERE VERY HIGH SO YOU COULDN'T INDUCE PEOPLE TO MOVE AND EMPLOYEE LOYALTY WAS LOW BECAUSE THE ECONOMY WAS BUBBLING AT SUCH A RAPID RATE WHEN YOU COMBINE THAT WITH RELATIVELY HIGH OPERATING COSTS IT MADE IT A PRETTY UNATTRACTIVE PLACE YOU COULDN'T EVEN GET TO THE AIRPORT THAT'S GOOD IN THE SENSE THAT EVERYBODY'S DOING WELL IT'S TERRIBLE FOR STARTING BUSINESS SO CURRENTLY MASSACHUSETTS AND INDEED MOST OF NEW ENGLAND HAS GONE THROUGH A SIGNIFICANT RECESSION YOU HAVE LOWERED HOUSING COSTS YOU HAVE AN AMPLE VERY HIGHLY SKILLED INTELLIGENT POTENTIAL WORK FORCE AS A RESULT OF LAYOFFS IN LARGER COMPANIES YOU HAVE EMPLOYEE LOYALTY AND WHEN YOU MATCH THAT WITH OPPORTUNITY YOU HAVE THE INGREDIENTS FOR A TERRIFIC TIME AND PLACE FOR NEWCOMPANY FORMATION IN TERMS OF UNATTRACTIVE PLACES I GET CONCERNED ABOUT PLACES WHERE THINGS LIKE WORKERS' COMPENSATION ARE OUT OF CONTROL WSJ SUCH AS MR SAHLMAN CALIFORNIA CALIFORNIA IS A MIXTURE OF GOOD NEWS AND BAD NEWS GOOD NEWS IN THAT IT'S A LARGE MARKETPLACE WITH A BUNCH OF BRIGHT CAPABLE PEOPLE BUT THEY HAVE A LEGAL SYSTEM AND SOME COSTSTRUCTURE AND ECONOMIC ISSUES THAT MAKE IT A HARD PLACE TO DO BUSINESS WSJ WHAT'S THE OUTLOOK FOR BANKS AS A SOURCE OF STARTUP CAPITAL FOR SMALL BUSINESS MR SAHLMAN AT VARIOUS POINTS IN TIME THEY HAVE BEEN PROVIDERS IN THE EARLY '80S FOR EXAMPLE HERE IN BOSTON A NUMBER OF BANKS WERE VERY AGGRESSIVE IN PROVIDING LEASE CAPITAL AND LOAN CAPITAL TO EARLYSTAGE HIGHTECHNOLOGY VENTURES WSJ VENTURE CAPITAL IS COMING BACK NOW AND THERE ARE MORE ANGELS OUT THERE MR SAHLMAN THERE ARE MORE ANGELS THE CREATION OF WEALTH IN THE '80S CREATED AN ARMY OF ANGELS WSJ YOU ALSO HAVE A SLEW OF GOVERNMENT PROGRAMS SO THERE ARE CLEARLY MORE SOURCES DOES THAT TRANSLATE INTO MORE MONEY AND DOES THAT IN TURN TRANSLATE INTO GREATER SUCCESS MR SAHLMAN TO ME THERE'S OFTEN AN INVERSE CORRELATION BETWEEN THE AMOUNT OF MONEY AROUND AND THE LIKELIHOOD OF SUCCESS FOR ANY INDIVIDUAL VENTURE IF I GO BACK TO THE HEYDAY OF VENTURE CAPITAL WHEN THERE WAS LOTS OF VENTURE CAPITAL AVAILABLE ANGEL MONEY IPO INITIAL PUBLIC OFFERING MONEY PUBLIC MONEY BANK MONEY LOTS OF EVERYTHING THERE WAS ALSO A HIGH MORTALITY RATE AND THAT'S PARTLY BECAUSE SO MANY COMPANIES IN THE SAME INDUSTRY GOT FUNDED AND THERE WAS COMPETITIVE MAYHEM AND BECAUSE PEOPLE HADN'T REALLY FOCUSED ON CREATING SUSTAINABLE COMPETITIVE ADVANTAGES THEY HAD ENTERED RELATIVELY LOWENTRYBARRIER BUSINESSES WHERE 100 COMPANIES WERE TRYING TO GET A 10 MARKET SHARE AND IT DIDN'T REALLY WORK CURRENTLY YOU HAVE LESS MONEY IN TOTAL AVAILABLE FROM ALL OF THOSE SOURCES FOR THE STARTUP SECTOR BUT PARADOXICALLY YOU MIGHT HAVE A HIGHER LIKELIHOOD OF SUCCESS AND THAT'S FOR TWO REASONS FEWER COMPANIES COMPETITORS ARE GETTING FORMED AND SECOND I THINK ENTREPRENEURS HAVE GOTTEN SMARTER AND FINANCIERS HAVE GOTTEN SMARTER ABOUT TRYING TO FIND THINGS WHERE THERE AREN'T 400 OTHER COMPETITORS BEING FORMED SIMULTANEOUSLY GOING AFTER 10 MARKET SHARE THE PROLIFERATION OF SOURCES ON THE ONE HAND MEANS MORE MONEY IS AVAILABLE AND PROBABLY ON BETTER TERMS BECAUSE SOME OF THOSE PLAYERS ARE NOT AS HARD NEGOTIATORS AS OTHERS ON THE OTHER HAND THERE MAY BE A DISCONNECT BETWEEN THE SKILLS OF THESE PROVIDERS AND WHAT THE RECIPIENT OF THE MONEY NEEDS WSJ SO NOT ALL CAPITAL IS VALUEADDED CAPITAL MR SAHLMAN RIGHT I OFTEN TELL PEOPLE TO THINK OF GETTING MONEY FROM CERTAIN VENTURE CAPITALISTS AS A PROCESS OF PAYING A RETURN ON CAPITAL TO THE LIMITED PARTNERS AND THEN PAYING CONSULTING OR BOARDMEMBERSHIP FEES TO THE VENTURE CAPITALISTS AND IF YOU WOULD NOT BE WILLING TO HIRE THEM TO PAY THEM A LOT OF MONEY TO BE INVOLVED IN YOUR COMPANY BECAUSE YOU THINK THEY CAN INCREASE THE LIKELIHOOD OF SUCCESS DON'T TAKE THE MONEY IN THE FIRST PLACE OR GO TO SOME GROUP THAT DOESN'T CHARGE IMPLICITLY FOR THE VALUE ADDED THAT THEY'RE SUPPOSED TO PROVIDE ON THE OTHER HAND GIVEN HOW HARD BUSINESS IS AND HOW DIFFICULT THE PATH IS ALONG THE WAY MOST COMPANIES NEED HELP OF SOME SORT WHETHER IT'S A GOOD BOARD OF DIRECTORS OR REALLY SMART ANGELS OR VENTURE CAPITALISTS OR WHATEVER MOST COMPANIES CAN'T DO IT THEMSELVES IF THEY'RE GOING TO ACHIEVE SOME SCALE THEY SAY THAT THE DIFFERENCE BETWEEN A GOOD INVESTOR AND A BAD INVESTOR IS HOW QUICKLY THEY PANIC BECAUSE ALL OF US HAVE BEEN INVOLVED IN COMPANIES THAT SAY IF YOU GIVE US A MILLION DOLLARS WE'RE GOING TO CREATE A 100 MILLION BUSINESS AND WE'LL NEVER NEED ANOTHER NICKEL OF CAPITAL AND THEN ABOUT SIX MONTHS INTO IT THEY SAY WE'RE GOING TO NEED ANOTHER 3 MILLION AND THE QUESTION IS DO PEOPLE PANIC OR NOT DO THEY ANTICIPATE THAT CALL AND ONE OF THE PROBLEMS WITH UNPROFESSIONAL ANGELS IS THAT THEY DON'T ANTICIPATE THAT CALL THEY GET UPSET THEY PANIC AND IT'S VERY HARD TO RAISE MONEY UNDER THE CIRCUMSTANCES IN WHICH PEOPLE HAVEN'T IMAGINED THAT YOU'RE GOING TO NEED MORE MONEY THAN YOU SAID YOU WERE GOING TO NEE WSJ IF YOU WERE STARTING A BUSINESS TODAY AND YOU HAD UNLIMITED CHOICE WHAT WOULD BE YOUR CHOICE OF WEAPON IN TERMS OF CAPITAL MR SAHLMAN THE CHOICE OF CAPITAL IS TO ME UNIQUELY TIED TO THE NATURE OF THE OPPORTUNITY IF I HAVE A CAPITALINTENSIVE HIGHPOTENTIAL VENTURE I'M GOING TO TRY TO GO FOR PROFESSIONAL SOURCES WHO CAN SUPPLY MONEY IN STAGES OVER TIME IF I'M GOING INTO A LABORINTENSIVE VENTURE I'M GOING TO THINK HARD ABOUT HOW TO INVOLVE A DIFFERENT SORT OF CAPITAL PEOPLE WHO HAVE EXPERTISE IN THAT KIND OF BUSINESS FOR EXAMPLE FROM MY PERSPECTIVE YOU CAN GO AFTER ANGEL CAPITAL AND DO EXTREMELY WELL GETTING VERY GOOD PEOPLE WHO ARE HELPFUL AND DON'T MAKE STUPID DECISIONS YOU CAN GET VERY GOOD VENTURECAPITAL MONEY AND YOU CAN GET VERY BAD VENTURECAPITAL MONEY PEOPLE WHO DON'T ADD ANY VALUE AND WHO ARE OBSTRUCTIVE YOU CAN GET PASSIVE MONEY AND HAVE IT WORK OUT FINE IF YOU DON'T NEED ACTIVE MONEY AND YOU CAN GET ACTIVE MONEY AND HAVE IT NOT WORK THAT WELL AND BOOTSTRAPPING HAS THIS ADVANTAGE YOU HAVE TO ORGANIZE THE BUSINESS TO GET MONEY FROM INTERNAL GENERATION AND YOU DON'T HAVE THE LUXURY OF BEING ABLE TO GO OUTSIDE AND GET CAPITAL THAT'S FINE AS LONG AS YOU HAVE THE RIGHT TO CONTROL THE RATE OF GROWTH OF THE BUSINESS AND THAT'S TRUE FOR A CERTAIN SET OF FIRMS WSJ SUCH AS WHAT MR SAHLMAN PERSONALSERVICE FIRMS CONSULTING FIRMS SMALL ACCOUNTING FIRMS SOME FIRMS EVEN IN MANUFACTURING BUSINESSES FIND IT POSSIBLE TO GET CUSTOMERS TO PAY FOR AN EARLY PROTOTYPE WSJ SUPPOSEDLY IT'S ALSO EASIER TO RAISE MONEY FOR A STARTUP IN THE PUBLIC MARKET THESE DAYS YOU HAVE FEWER REGULATIONS FOR INSTANCE SHOULD STARTUPS LOOK FOR PUBLIC MONEY MR SAHLMAN FIRST OF ALL PEOPLE WHO BUY IPOS IN GENERAL TURN OUT TO BE SUCKERS IF THEY HOLD THEM THE ONLY PEOPLE WHO REALLY MAKE MONEY IN IPOS ARE THE ONES WHO BUY THEM AND FLIP THEM IN THE FIRST DAY BECAUSE THERE'S ON AVERAGE A 16 SINGLEDAY RETURN IF YOU HOLD THEM FOR THE LONG TERM ON AVERAGE YOU EARN ABOUT ZERO PERCENT YOU HAVE SOME COMPANIES THAT DO SPECTACULARLY WELL BUT THOSE ARE THE EXCEPTIONS BUYING VERY RISKY IPOS LIKE BLIND POOLS OR VERYEARLYSTAGE STARTUP COMPANIES IS EVEN RISKIER BECAUSE THE LIKELIHOOD OF SUCCESS OF THOSE BUSINESSES IS MODEST AND YOU TEND TO PAY A VERY HIGH PRICE WITH RESPECT TO ENTREPRENEURS IT IS QUITE FRANKLY AN ATTRACTIVE SOURCE OF LOWCOST CAPITAL BUT IT HAS NO VALUE ADDED IT HAS VERY HIGH ADMINISTRATIVE COSTS AND IT HAS LONGTAILED LIABILITIES MEANING THAT IF YOU END UP NOT DOING WELL YOU'RE GOING TO GET SUED AND IT MAY BE A GOOD IDEA FOR PEOPLE WHO ARE REALLY CONFIDENT THINK THEY HAVE A GOOD IDEA AND HAVE HIGH INTEGRITY PEOPLE WHO SAY WE NEED 5 MILLION OR 10 MILLION AND WE DON'T WANT TO GIVE UP 98 OF THE COMPANY WSJ HOW MUCH DO YOU THINK IT COSTS FOR SOMEONE TO GO THROUGH THE WHOLE PROCESS TO GO PUBLIC AND TO CONFORM TO THE SEC'S DISCLOSURE REQUIREMENTS MR SAHLMAN I THINK IT'S A MINIMUM OF 150000 PLUS 50000 TO 80000 A YEAR SOMETHING LIKE THAT A LARGER COMPANY GOING PUBLIC IS 300000 TO 500000 WITH TOTAL COSTS WHEN YOU COUNT MANAGEMENT TIME AND TRAVEL AND ROADSHOW AND STUFF PROBABLY 100000 A YEAR ONGOING SO IT HAS A HIGH FIXED COST I'VE MADE A PROPOSAL TO THE SEC THAT THEY COME UP WITH A NEW DISCLOSURE FORM AN AWFUL LOT OF MONEY IS SPENT NOW ON DISCLOSURE DOCUMENTS EVEN WHEN YOU USE THE SHORT FORM MY SEC DISCLOSURE POLICY IS THAT EVERY PROSPECTUS OUGHT TO SAY IF YOU BUY THIS STOCK YOU'LL LOSE ALL YOUR MONEY AND THEN I WOULD HAVE AN ASTERISK THAT SAYS ONLY THE INTEGRITY GOOD LUCK AND HARD WORK OF THE INDIVIDUALS RUNNING THE COMPANY WILL SAVE YOU FROM CERTAIN LOSS AND THE REASON IS THAT I THINK PEOPLE GET LULLED INTO BELIEVING THE RISK FACTORS IN A PROSPECTUS OR BUSINESS PLAN ARE THE RISK FACTORS THEY SOMEHOW IMAGINE THAT'S A COMPREHENSIVE LIST WELL BUSINESSES FAIL FOR COMPLICATED REASONS THE PEOPLE AREN'T COMPETENT OR NOT ADAPTIVE OR THERE'S SOME CONTEXTUAL CHANGE THEY DIDN'T ANTICIPATE OR IT WAS NOT A VIABLE TECHNOLOGY WSJ SOME PEOPLE BELIEVE THAT IT'S BETTER TO INVEST IN AN ENTREPRENEUR WHO HAS DONE IT BEFORE THAN IN SOMEONE WHO HASN'T IS THE OPPORTUNITY THE REAL ISSUE OR IS IT THIS TRANSFERABILITY OF ENTREPRENEURIAL SKILLS MR SAHLMAN I DON'T HAVE A WHOLLY CONSISTENT SET OF VIEWS ABOUT THE ISSUE THERE ARE SOME ENTREPRENEURS WHO REALLY ARE PROCESS EXPERTS WHO UNDERSTAND EVERYTHING THERE IS TO KNOW ABOUT THE ENTREPRENEURIAL PROCESS THEY KNOW HOW TO IDENTIFY OPPORTUNITY THEY KNOW HOW TO BUILD A TEAM THEY KNOW HOW TO EXPLOIT THINGS THEY KNOW HOW TO GET MONEY BACK WSJ AND WHO COULD REPEAT THAT PAST SUCCESS MR SAHLMAN YES AND I'VE SEEN PEOPLE WHO HAPPENED TO HAVE BEEN IN A CERTAIN PLACE AT A CERTAIN POINT IN TIME WITH A GOOD IDEA AND SOME GOOD SUPPORT WORK AND DID FABULOUSLY WELL AND THEY HAVEN'T A CLUE ABOUT WHAT TO DO NEXT THEY'RE NOT GOOD INVESTORS AND THEY'RE NOT GOOD ADVISERS AND THEY'RE NOT REPEAT ENTREPRENEURS AND THERE'S OFTEN A PROCESS OF ASSUMING BASED ON WHAT YOU'VE SUCCEEDED IN DOING IN THE PAST THAT YOU'RE AN EXPERT OR YOU'RE A GENIUS WHAT I LOOK FOR IS NOT WHETHER THEY'VE CREATED A COMPANY OR GROWN IT TO A CERTAIN SIZE AND THEN HARVESTED IT I INSTEAD ASK DO THEY HAVE THE RIGHT SKILLS AND INSIGHTS AND CONTACTS AND EXPERIENCES FOR THIS PARTICULAR OPPORTUNITY WSJ YOU SEE A LOT OF BUSINESS PLANS MR SAHLMAN I SEE A FEW A WEEK WSJ ARE ENTREPRENEURS TODAY WHO ARE STARTING BUSINESSES SMARTER MORE EXPERIENCED MORE KNOWLEDGEABLE THAN SAY IN THE '80S MR SAHLMAN THE INTRODUCTION IN THE EARLY '80S OF COMPUTERSOFTWARE SPREADSHEETS MEANT THAT EVERY BUSINESS PLAN NOW HAS A LEVEL OF FINANCIAL SOPHISTICATION BUT IT HAS NOTHING TO DO WITH THE QUALITY OF THE FORECAST OR NUMBERS THE PLANS OFTEN AREN'T WORTH THE PAPER THEY'RE WRITTEN ON SECOND THERE'S BEEN A PROLIFERATION OF KNOWLEDGE AND BOOKS ABOUT BUSINESS PLANS WHAT'S AMAZING IS THE VENTURECAPITAL COMMUNITY WILL GET PRECISELY THE SAME LETTER AND THE SAME BUSINESSPLAN FORM THREE OR FOUR TIMES A WEEK DIFFERENT OPPORTUNITIES BUT PEOPLE HAVE COPIED IT OUT OF SOME BOOK MY EXPERIENCE WITH BUSINESS PLANS IS THAT I'M LOOKING FOR HOW PEOPLE THINK NOT WHAT EXACTLY THEY PROPOSE WHAT HAVE THEY DONE BEFORE WHY WOULD I IMAGINE THAT THIS WAS THE GROUP THAT WAS GOING TO SOLVE ALL OF THESE PARTICULAR ISSUES HOW BIG MIGHT THE MARKET BE IS THERE ENOUGH PIE IF YOU WILL TO SPREAD AROUND TO THE VARIOUS FOLKS HAVE THEY THOUGHT ABOUT WHAT CAN GO WRONG AND WHAT CAN GO RIGHT AND I MEAN BOTH SIDES OF THAT EQUATIONSO THAT THEY INCREASE THE LIKELIHOOD OF WHAT CAN GO RIGHT GOING RIGHT AND/OR HAVE MITIGATED SOME OF THE RISKS BY RAISING ENOUGH CAPITAL OR BY GETTING CAPITAL FROM THE RIGHT SOURCES STILL I THINK PEOPLE ARE MORE SOPHISTICATED THEY'RE DOING A MUCH BETTER JOB OF DESCRIBING THE BUSINESS WITH THE EXCEPTION OF THESE AUTOPILOT BUSINESS PLANS AND THEY HAVE A LEVEL OF SKILL AND EXPERIENCE THAT'S MUCH HIGHER THAN IT WAS 10 YEARS AGO WSJ WHAT IS AN AREA WHERE YOU FIND ENTREPRENEURS ARE SMARTER NOW THAN 10 YEARS AGO MR SAHLMAN IT'S A MIXED PICTURE IN EVERY ONE OF THE THINGS I TALK ABOUT ON THE ONE HAND THERE'S DECREASING FINANCIAL NUMERACY IN THE UNITED STATES AND THERE'S TOO MUCH RELIANCE ON AUTOMATON SOLUTIONS TO COMPLEX PROBLEMS WITHOUT KNOWLEDGE BUT ON THE OTHER HAND THERE ARE SOME GUYS WHO REALLY DO KNOW WHAT THEY'RE DOING SOME PEOPLE ARE MUCH BETTER AT SALES AND MARKETING AND KNOWING ABOUT DISTRIBUTION AND CHANNEL CONFLICT THAN HAS BEEN THE CASE FOR A LONG TIME WSJ WHAT HAVE ENTREPRENEURS LEARNED THE LEAST ABOUT MR SAHLMAN MY VIEW IS THERE IS AN AGEOLD THING ABOUT WHICH PEOPLE WILL NEVER LEARN AND THAT IS THE HORSE RACE BETWEEN FEAR AND GREED TYPICALLY THE MOST COMMON MISTAKE IS THAT ENTREPRENEURS GET HUNG UP ABOUT WHAT PERCENT OF THE COMPANY THEY OWN AT EACH STAGE OF FINANCING WHAT I TRY TO GET PEOPLE TO FOCUS ON IS THE LAST STAGE AND THAT YOU DON'T NECESSARILY GET TO THE BEST LAST POSITION BY MAXIMIZING YOUR POSITION AT EACH POINT ALONG THE PATH LET ME OFFER AN EXAMPLE PEOPLE ALWAYS WANT TO GET A HIGH PRICE YOU CAN RAISE MONEY AT A BETTER PRICEGIVE UP LESS OF THE COMPANY FOR THE SAME AMOUNT OF CAPITAL BUT IT TAKES LONGER IF IT TAKES THREE TO SIX MONTHS TO RAISE ANY CAPITAL IT MIGHT TAKE NINE MONTHS TO RAISE CAPITAL AT A BETTER PRICE IF THE OPPORTUNITY IS DYNAMIC AT ALL AND YOU'VE JUST SPENT THREE MONTHS TRYING TO INCREASE YOUR PERCENTAGE OWNED ON DAY ONE YOU MIGHT HAVE SHOT YOURSELF IN THE FOOT SO WINNING THE FIRST BATTLE MAY NOT BE WINNING THE WAR WSJ ARE THERE THINGS WE CAN DO THAT WILL CREATE A CLIMATE WHERE ENTREPRENEURIAL BUSINESSES HAVE A HIGHER RATE OF SUCCESS MAYBE IN TERMS OF EXPANDING THE SOURCES OF CAPITAL CHANGING REGULATIONS MAKING CONNECTIONS BETWEEN SMALLER AND BIG BUSINESSES MR SAHLMAN THERE ARE MANY WAYS TO ATTACK THE QUESTION I PARTICULARLY HAVE BEEN CONCERNED OVER THE PAST FOUR OR FIVE YEARS ABOUT INTERSTATE COMMERCE THAT THE STATES HAVE COME UP WITH THEIR OWN ENVIRONMENTAL REGULATIONS THAT EACH HAS A VERY DIFFERENT TAX SYSTEM THAT EACH HAS ITS OWN BLUESKY LAW THAT IS DIFFERENT FROM WHAT THE FEDERAL LAW IS AND THAT EACH HAS A VERY DIFFERENT LEGAL SYSTEM IN TERMS OF ENFORCING CONTRACTS IN SUCH AREAS AS EMPLOYMENT I'M ON THE BOARD OF A COMPANY THAT DOES BUSINESS IN PERHAPS 40 STATES FILING THE TAX RETURNS COSTS THOUSANDS AND THOUSANDS OF DOLLARS HOW CAN THAT POSSIBLY BE IN THE BEST INTEREST OF ANYBODY NOW I DON'T KNOW EXACTLY HOW TO GET THE FAIR SHARE OF WHAT BURDENS COMPANIES IMPOSE ON THE LOCAL SYSTEM AND THEREFORE WHAT SHARE OF TAXES THEY SHOULD PAY BUT I CAN TELL YOU THE WAY IT'S CURRENTLY SET UP IS GOING TO DRAG SMALL BUSINESS DOWN COMPLETELY SIMPLIFYING OR MAKING SOMEWHAT MORE STANDARD THE INTERSTATE VARIATIONS WOULD BE A BIG IMPROVEMENT I'D CONTINUE TO ENFORCE FRAUD PROVISIONS BUT MY VIEW IS YOU CAN'T TYPICALLY PROTECT PEOPLE FROM DOING STUPID THINGS AND THE STATES JUST ADD COSTS IT'S WEALTH TRANSFERRED TO LAWYERS I'VE NEVER SEEN IT DO ANY GOOD AT A GENERAL POLICY LEVEL TAX DECISIONS DRIVE A LOT MORE BUSINESS DECISIONS THAN ANYBODY LIKES MY STUDENTS ARE OFTEN AMAZED I HAVE A NUMBER OF CASE STUDIES ON PRIVATE COMPANIES THAT LOOK UNPROFITABLE THE QUESTION I ASK STUDENTS WHAT ARE THEY WORTH STUDENTS ALWAYS COME UP WITH A LOW VALUE BUT THEN I SAY WELL HOW MUCH ARE THE PRINCIPALS TAKING OUT IN SALARY DO THEY HAVE CARS AND REALESTATE SUBLEASES AND SO ON AND ON AN ADJUSTED BASIS THESE ARE PROFITABLE BUSINESSES IT'S JUST THE INTERNAL REVENUE SERVICE DOESN'T GET A LARGE SHARE BUT A LOT OF THOSE DECISIONS THAT ARE DESIGNED TO MINIMIZE THE TAX BURDEN AREN'T PRODUCTIVE FOR THE ECONOMY WSJ YOU TALKED ABOUT HEALTHCARE COSTS HOW BIG A PROBLEM IS THAT MR SAHLMAN HEALTHCARE COSTS HAVE TO BE AT THE TOP OF THE AGENDA FOR EVERYONE FIRST OF ALL HEALTHCARE COSTS ARE A FIXED COST THE PREMIUM I PAY DOESN'T DEPEND ON MY SALARY IT DEPENDS ON HOW MUCH THE INSURER CHARGES IF YOU HAPPEN TO BE A NEW COMPANY WITH MODEST SALARIES HEALTH CARE IS A MUCH LARGER PROPORTION OF YOUR COSTS THAN FOR A COMPANY THAT HAS A HIGHER SALARY RANGE SECOND A SMALL BUSINESS OFTEN CAN'T PROVIDE THE INSURANCE THAT IT WANTS TO FOR EXAMPLE IF COTTAGE SOFTWARE WITH FIVE EMPLOYEES GOES AND TRIES TO BARGAIN WITH BLUE CROSS WE GET A HIGHERCOST DEAL THAN A BIGGER COMPANY WOULD AND WE GET A WHOLE BUNCH OF THINGS EXCLUDED WHICH MEANS WE CAN'T NECESSARILY ATTRACT THE CROSS SECTION OF PEOPLE WE'D LIKE TO ATTRACT IT'S A DISASTER WSJ GIVEN ALL OF THESE PROBLEMS THAT MAY INHIBIT SMALLBUSINESS GROWTH CAN GOVERNMENT PLAY A ROLE WHETHER ON A FEDERAL STATE OR LOCAL LEVEL IN HELPING SMALLBUSINESS DEVELOPMENT AND SHOULD IT MR SAHLMAN MY VIEW IS THAT UNCERTAINTY ABOUT GOVERNMENT REGULATION AT THE STATE AND FEDERAL LEVEL IS ONE OF THE MOST PERNICIOUS BURDENS OF BUSINESS IT'S NOT KNOWING WHAT THEY'RE GOING TO DO BUT KNOWING THAT THEY'RE WORKING ON CHANGING IT'S NOT KNOWING WHAT THE HEALTHCARE SYSTEM WILL BE LIKE UNDER THE CLINTON ADMINISTRATION IT'S CONCERN ABOUT WHAT IT WILL BE FOR EXAMPLE WOULD YOU ADD THE 51ST EMPLOYEE OR THE 50TH EMPLOYEE IN A BUSINESS IF YOU THINK 50 IS THE THRESHOLD FOR MANY OF THESE CHANGES IT'S LIKE HAVING THRESHOLDS IN THE TAX SYSTEM WHERE IF YOU HAVE A CERTAIN AMOUNT OF INCOME YOU HAVE A TAX RATE OF 31 OTHERWISE IT'S 36 OR MAYBE IT'S 396 WELL YOU TEND TO PAY A LOT OF ATTENTION TO THE INFLECTION POINTS IF THE GOVERNMENT COULD JUST FIX A SET OF RULES AND LIVE BY THEM WE'D ALL BE A LOT BETTER OFF NOW PEOPLE WILL SAY THE WORLD CHANGES AND BLAH BLAH BLAH BUT ON THE OTHER HAND IT SEEMS TO ME A LOT OF THE UNCERTAINTY IS JUST STUPID I THINK THE ENVIRONMENTAL SIDE OF THE HOUSE IS AN UNMITIGATED DISASTER FOR BUSINESS GENERALLY BUT SMALL BUSINESS IN PARTICULAR YOU CAN'T BUY A PIECE OF LAND WITHOUT INCURRING A LONGTAILED LIABILITY IF YOU CAN'T BUY LAND JUST LIKE YOU CAN'T HIRE EMPLOYEES BECAUSE OF THE IMPLICIT COST STRUCTURE AND RISK IT'S NOT PROBUSINESS IT'S A PROBLEM WSJ BUT THERE'S THE OTHER SIDE OF GOVERNMENTSPAWNED PROGRAMS PLACES LIKE WORCESTER BIOTECHNOLOGY PARK IN MASSACHUSETTS AS WELL AS SOME OF THE SMALLBUSINESS DEVELOPMENT PROGRAMS SUCH AS THE EDISON PROGRAM IN OHIO AND THE BEN FRANKLIN PROGRAM IN PENNSYLVANIA ARE THEY GOOD IDEAS SHOULD THEY BE OR CAN THEY BE REPLICATED ELSEWHERE MR SAHLMAN THINK ABOUT SEVERAL DIFFERENT LAYERS OF GOVERNMENT IN THAT REGARD ONE IS AS PROVIDERS OF CAPITAL AND THERE I HAVE VERY AMBIVALENT FEELINGS GOVERNMENT CAPITAL DOESN'T NECESSARILY HAVE THE VALUE ADDED THAT I LIKE TO SEE ASSOCIATED WITH CAPITAL TWO IT TYPICALLY HAS A HIGH ADMINISTRATIVE COST TO GET IT THIRD IT'S NOT ORIENTED TOWARD THE ONGOING NEEDS OF BUSINESS IN THE WAY OTHER SOURCES OF CAPITAL ARE FOURTH IT DOES COMPETE ULTIMATELY WITH PRIVATE CAPITAL PERHAPS ANOTHER WAY TO SAY IT IS THAT IT SUPPLEMENTS MARKET SOURCES THE MARKET SEEMS TO WORK IN SUPPLYING THE RIGHT NUMBER SUBJECT TO THESE VERY HIGH HURDLES THAT EXIST FOR ALL BUSINESS MY VIEW OF LOAN GUARANTEES IS THAT THEY CREATE THIS PERVERSE INCENTIVE WHICH IS HEADS I WIN TAILS YOU LOSE THE SAME WAS TRUE OF DEPOSIT INSURANCE THE GOVERNMENT CAN CREATE SMALLBUSINESS DEVELOPMENT PARKS WHICH PROVIDE ENTREPRENEURIAL VENTURES WITH SUBSIDIZED REAL ESTATE TECHNICAL ADVICE AND OTHER ASSISTANCE THEY CAN CREATE INFRASTRUCTURE THEY CAN CREATE PLACES WHERE THERE ARE TAX HOLIDAYS AND THE LIKE WHICH I THINK ARE MORE APPROPRIATE ATTEMPTS TO ADDRESS SOME OF THE UNDERLYING DISADVANTAGES OF SMALL SCALE SO IF THERE ARE TAX HOLIDAYS AND IF THERE ARE REDUCED PROPERTY TAXES WHATEVER IN A PARK I THINK THAT DOES HAVE SOME ATTRACTIVE CHARACTERISTICS WSJ IT SEEMS THAT THE OPPORTUNITIES FOR A SMALL BUSINESS TO TIE ITS FORTUNES TO A BIG COMPANY HAVE NEVER BEEN BETTER PERHAPS THE BEST WAY FOR A SMALL BUSINESS TO BE INDEPENDENT AND TO HAVE A QUICK STARTUP TIME TO GET ACCESS TO CAPITAL AND CUSTOMERS QUICKLY IS TO MEET A BIG CORPORATION'S NEEDS BUT WHAT ABOUT THE SMALLBUSINESS PERSON WHO WANTS TO CUT LOOSE THE TIE THAT BINDS WHO DOESN'T WANT TO LINK UP WITH A BIG BUSINESS MR SAHLMAN THINK ABOUT THE EXISTENCE OF DISTRIBUTION PIPELINES AS SORT OF A CORE ASSET IN LARGESCALE BUSINESS EVERYWHERE WHAT'S THE PROBLEM THE PROBLEM IS FILLING THE PIPELINE AND HAVING TO BET SOLELY ON YOUR INTERNAL CAPABILITIES SO WHAT DO YOU DO YOU FORM A PORTFOLIO OF INSIDE AND OUTSIDE PROJECTS THE PURPOSE OF WHICH IS ULTIMATELY TO TAKE ADVANTAGE OF THE DISTRIBUTION SYSTEM NOW WHAT DOES THAT MEAN THAT MEANS THERE ARE AN AWFUL LOT OF PLACES WHERE THE LITTLE GUY DOES HAVE THE GOOD IDEA THE QUICK MANEUVERING CAPABILITY THE CLOSENESS TO THE CUSTOMER ALL THEY HAVE TO DO IS CONVINCE THE BIG COMPANY THAT THEY HAVE A PROBLEM AND THE LITTLE COMPANY HAS A PROBLEM AND TOGETHER THEY CAN SOLVE THEIR MUTUAL PROBLEM WITHOUT DESTROYING THE LITTLE COMPANY AND WITHOUT JEOPARDIZING THE CULTURE AND EXISTENCE OF THE BIG COMPANY IT'S A LEARNING PROCESS I THINK WHAT SMALL BUSINESS HAS TO GET BETTER AT IS NOT HAVING THE FATAL FLAW OF NOT INVENTED HERE IT HAS TO LEARN HOW TO LEVERAGE RELATIONSHIPS WITH LARGE COMPANIES AND PRECLUDE OTHERS FROM FORMING THE RELATIONSHIP WSJ IF YOU LOOK AT THE WHOLE ENVIRONMENT LARGE COMPANIES GETTING MORE EFFICIENT AN ECONOMY THAT ISN'T GOING ANYWHERE FROM MANY PERSPECTIVES NEW KINDS OF SUPPORT MECHANISMS IN FINANCE AND TECHNOLOGY DO YOU THINK STARTING A BUSINESS OVER THE NEXT FIVE YEARS IS GOING TO BE AN EASIER OR HARDER PROPOSITION OR THE SAME MR SAHLMAN TO STATE IT IN A POSITIVE WAY THERE'S STILL AN ENORMOUS AMOUNT OF OPPORTUNITY IN THE ECONOMY IT WILL REQUIRE MORE AGILITY MORE SKILL THERE WILL BE LESS TOLERANCE OF MISTAKES MY OWN VIEW IS THE HALF LIVES OF BUSINESS ALL BUSINESS IS DECREASING OVER TIME THE WORLD IS MORE COMPETITIVE THAN IT WAS BEFORE WE HAVE GLOBAL COMPETITORS WHO ARE NO LONGER FOCUSED ON EXPLOITING LABORCOST DIFFERENTIALS THEY ARE VERY INNOVATIVE VERY CAPABLE YOU HAVE THE ENTREPRENEURIAL REVOLUTION IN THE UNITED STATES YOU HAVE THE REVIVAL OF LARGE BUSINESS IN AMERICA AND EVERYWHERE AND THE CONFLUENCE OF THOSE THINGS WILL MEAN THAT BUSINESS IS GOING TO GET HARDER AND MARGINS ARE GOING TO GO DOWN INFLATION I THINK IS GOING TO BE LOW BECAUSE OF PRICE COMPETITION AND INNOVATION THE RESULT OF THAT IS THE STAKES ARE HIGHER AT THE SAME TIME THERE STILL WILL BE TREMENDOUS OPPORTUNITIES IN THIS ECONOMY FOR PEOPLE TO CONTROL THEIR OWN DESTINY TO START THEIR OWN BUSINESS TO GAIN ACCESS TO CAPITAL ON TERMS THEY FIND ACCEPTABLE THAT IS PROBABLY INCREASINGLY SO BECAUSE THERE'S MORE CAPITAL AND LIQUIDITY IN THE ECONOMY AND OUTLETS FOR INVESTMENTS ARE FEWER AND FARTHER BETWEEN I THINK YOU'RE GOING TO SEE AN INCREASE IN THE FLOW OF MONEY INTO THE ENTREPRENEURIAL SECTOR BECAUSE PEOPLE ARE TRYING TO DO ANYTHING TO AVOID 23 MONEYMARKET FUNDS SO IT'S A GOOD TIME NOT NECESSARILY ANY BETTER THAN THE EARLY '80S AND NOT NECESSARILY WORSE IT'S JUST DIFFERENT ALL BUSINESS IS GOING TO BE HARD ALWAYS HAS BEEN ALWAYS WILL BE 9310150156 931015 SMALL BUSINESS A SPECIAL REPORT FIRST STEPS MOST LIKELY TO SUCCEED WHERE WILL OPPORTUNITY KNOCK LOUDEST OVER THE NEXT FEW YEARS SEVERAL EXPERTS OFFER PREDICTIONS BY EUGENE CARLSON IF YOU THINK FORECASTING TURNS IN THE INTERESTRATE CYCLE IS TOUGH PITY THE POOR PROGNOSTICATOR WHO TRIES TO PICK AREAS WHERE ENTREPRENEURS SHOULD THROW THEIR MONEY TO REAP BIG REWARDS BY THE YEAR 2000 SECTORS THAT LOOK HOT FOR THE REST OF THE 1990S SAY SOFTWARE OR TELECOMMUNICATIONS ARE VULNERABLE TO OVERCROWDING AS ENTREPRENEURS FLOCK IN THINKING THEY CAN'T MISS CONVERSELY AREAS THAT APPEAR PLAYED OUT MAY PRODUCE WINNERS AS ENTREPRENEURS FIND PROFITABLE NICHES WHERE FEW ARE LOOKING NONETHELESS SOME EXPERTS WILLING TO TAKE A RISK AT LEAST AS SEERS THINK A HANDFUL OF FIELDS MAY OFFER GOLDEN OPPORTUNITIES FOR THE REST OF THE DECADE HERE THEY ARE CAVEAT ENTREPRENEUR RECYCLING FIGURE OUT MONEYMAKING USES FOR OLD NEWSPAPERS AND SODA CANS AND WIN THE GRATITUDE OF A THOUSAND MAYORS WHO ARE UP TO THEIR EARS IN RECYCLED DETRITUS A TENNESSEE TEXTILE COMPANY IS CONVERTING THE REMAINS OF PLASTIC BOTTLES INTO SYNTHETIC FLEECE USED IN THE LININGS OF JACKETS BY THE TRENDY OUTDOOR GARMENT MAKER PATAGONIA INC ON THE OTHER HAND A HOST OF LOWERVOLUME COMMODITIES MAY BE RIPE FOR RECYCLING A NEW YORK COMPANY THINKS SALVAGING THE EXPENSIVE GAS FROM UNUSED AIR BAGS IN JUNKED CARS LOOKS PROMISING PAWN SHOPS THEY'RE ENJOYING A COMEBACK EXISTING SHOPS ARE CONSOLIDATING INTO CHAINS THIS NICHE IS A NATURAL FOR THE CURRENT UNEASY ECONOMY SAYS NEW YORK INVESTORRELATIONS CONSULTANT WILLIAM DUNK ANYTHING ASSOCIATED WITH THE BIBLICAL PLAGUES FAMINE PESTILENCE CRIME POVERTY IS A GOOD AREA FOR THE 90S MR DUNK SAYS GLASS WE'RE NOT TALKING SODAPOP BOTTLES HERE CYRUS FREIDHEIM VICE CHAIRMAN OF CONSULTANTS BOOZ ALLEN & HAMILTON INC IN CHICAGO TICKS OFF A FLOCK OF POTENTIAL GLASS BREAKTHROUGHS IN LAPTOP COMPUTERS AN IMPROVED LENS MADE POSSIBLE BY ADVANCES IN OPTICS DESIGN COULD MAKE SCREENS CLEARER REQUIRE LESS BATTERY POWER OR BOTH GLASS WITH A UNIQUE SIGNATURE CAN BE USED TO PRODUCE CREDIT CARDS THAT ARE ALMOST IMPOSSIBLE TO COUNTERFEIT AND DON'T FORGET NIGHTVISION GLASSES TUCSON ARIZ AND ROCHESTER NY ARE THE HOTBEDS OF GLASS RESEARCH I JUST THINK IT'S A REVOLUTION ABOUT TO HAPPEN MR FREIDHEIM SAYS DEMANUFACTURING EUROPE SEEMS WELL ON THE WAY TOWARD REQUIRING AUTO AND APPLIANCE MAKERS TO BUY BACK THEIR USED PRODUCTS AS A WAY OF INCREASING RECYCLING CAN THE US BE FAR BEHIND INDEED IT CAN STILL DOUGLAS SHOOTER OF THE CONSULTING FIRM ARTHUR D LITTLE IN CAMBRIDGE MASS SAYS THERE'S A GROWING PUSH HERE TO GIVE A GREATER VARIETY OF ONCEUSED INDUSTRIAL PARTS A SECOND LIFE WESTINGHOUSE AND GENERAL ELECTRIC MIGHT BE WILLING TO SUPPORT SMALL COMPANIES THAT WANT TO GET INTO THAT HE SPECULATES ELDERLY ADVICE DO YOU WANT TO ENJOY YOUR RETIREMENT YEARS OR DO YOU WANT TO SPEND HALF THE TIME FIGURING OUT HOW TO APPLY FOR MEDICARE REIMBURSEMENTS NO ONE THINKS TWICE ABOUT ASKING AN ACCOUNTANT TO HELP SORT OUT INCOMETAX GOBBLEDYGOOK SAYS DEMOGRAPHER PETER MORRISON AT RAND CORP A RESEARCH INSTITUTION IN SANTA MONICA CALIF SO IN A COUNTRY WITH AN AGING POPULATION HE EXPECTS DEMAND FOR ADVISERS WHO COULD HELP OLDSTERS WADE THROUGH COMPLICATED MEDICALINSURANCE FORMS MR MORRISON SAYS IT FITS WITH HIS GENERAL THEORY THAT THERE'S MONEY TO BE MADE IN HELPING PEOPLE COPE WITH CHORES THAT HAVE A STEEP LEARNING CURVE AND ARE NO FUN AT ALL PERSONAL HEALTH MANAGEMENT THE HEALTHCARECOST FRANKENSTEIN MEETS THE FITNESSBOOM GODZILLA RESULT EVERYBODY GETS A PERSONAL TRAINER SORT OF LOTS OF COMPANIES WILL PAY TO KEEP THEIR EMPLOYEES HEALTHY SAYS PETER FRANCESE PRESIDENT OF AMERICAN DEMOGRAPHICS INC ITHACA NY HE FORESEES GROUPS OF EMPLOYEES MEETING REGULARLY WITH FITNESS COUNSELORS WHO OFFER HEALTH AND NUTRITIONAL TIPS WHILE PRODDING PEOPLE TO KEEP UP THEIR AEROBICS AND IT'S ALL GOOD BUSINESS FOR THE ENTREPRENEURS WHO ORGANIZE IT POLLUTION CONTROL BOUGHT YOUR ELECTRIC CAR YET OF COURSE NOT AND NEITHER HAS ANYONE ELSE YOU KNOW THE CAR OF THE FUTURE IS STILL JUST THAT MEANING BIG DEMAND FOR POLLUTIONCONTROL EQUIPMENT AIMED AT TAMING THE OLDFASHIONED INTERNALCOMBUSTION ENGINE JOHN PEIRSON A DIRECTOR OF ARTHUR D LITTLE IN SANTA BARBARA CALIF POINTS TO NEW TYPES FUEL INJECTORS THAT WHEN FITTED INTO EXISTING DIESEL ENGINES CAN GREATLY REDUCE NOXIOUS EMISSIONS HE ALSO SAYS THERE'S PROMISING TECHNOLOGY THAT USES STEAM TO ELIMINATE HAZARDOUS WASTE ON SITE OUTSOURCING CELESTIAL SEASONINGS INC HAS TURNED OVER 10 OF ITS MANUFACTURING TO OUTSIDERS THE WEIGHT WATCHERS UNIT OF HJ HEINZ CO DOESN'T MAKE ANYTHING INHOUSE ANYMORE IT SEEMS THAT EVERY BIG AND MIDSIZE COMPANY IS TRYING TO SLIM DOWN BY GETTING SMALL BUSINESS TO MAKE PRODUCTS AND DO CHORES THE COMPANIES USED TO DO THEMSELVES INCLUDED ON A LONG LIST OF OUTSOURCED TASKS COMPILED BY CONSULTANTS AT KEARNEY INC IN CHICAGO PACKAGING PURCHASING ORDER FULFILLMENT DUPLICATING MAIL ROOM PAYROLL THE END OF THIS TREND IS NOWHERE IN SIGHT EATING OUT I AM CONTINUALLY AMAZED AT HOW MUCH STUFF THERE IS IN THE RESTAURANT INDUSTRY SAYS GAIL FOSLER CHIEF ECONOMIST OF THE CONFERENCE BOARD A NONPROFIT BUSINESS RESEARCH GROUP IN NEW YORK KITCHEN EQUIPMENT FOOD REAL ESTATE TRANSPORTATION THE HUGE SLICE OF THE ECONOMY DEVOTED TO FEEDING AMERICA'S FACE KEEPS EXPANDING NEARLY 10 OF US CONSUMER SPENDING IS DROPPED ON FOOD NOT PREPARED AT HOME MS FOSLER SAYS YOU WANT FASTER FAST FOOD HOW ABOUT AN OVEN NOW ON THE MARKET THAT COOKS PIZZAS IN LESS THAN A MINUTE ENTREPRENEURS SHOULD LOOK AT THE GROWING TREND OF DELIVERING AND RECONSTITUTING FOOD COOKED ELSEWHERE CENTRAL PREPARATION IS THE KEY NOW SAYS GREG RICHARDS EDITOR OF FOODSERVICE EQUIPMENT & SUPPLIES SPECIALIST A MONTHLY INDUSTRY MAGAZINE ALL THE MAJOR CHAINS ARE RACKING THEIR BRAINS ON THIS INFORMATION WOULD YOU RATHER RUN AN AIRLINE OR SIMPLY PUBLISH A COMPENDIUM OF AIRLINE SCHEDULES RICHARD RAZGAITIS VICE PRESIDENT OF COMMERCIAL DEVELOPMENT AT BATTELLE MEMORIAL INSTITUTE COLUMBUS OHIO NOTES THAT THE OFFICIAL AIRLINE GUIDE WAS MORE PROFITABLE LAST YEAR THAN THE INDUSTRY IT COVERED MR RAZGAITIS SAYS ENTREPRENEURS LOOKING FOR NICHES IN THE HUMONGOUS INFORMATION SECTOR SHOULD FIND CUSTOMERS WHO PUT A HIGH VALUE ON WHAT THEY GET WITHOUT THAT YOU DON'T GET THE MARGIN AND IF YOU'RE NOT IN A HIGHMARKUP BUSINESS I THINK YOU'RE DEAD MR CARLSON IS A STAFF REPORTER IN THE WALL STREET JOURNAL'S WASHINGTON BUREAU 9310150155 931015 TRISTAR REVOLVINGCREDIT LINE SAN ANTONIO TRISTAR CORP SAID IT RECEIVED A NEW 10 MILLION REVOLVINGCREDIT AGREEMENT WITH FREMONT FINANCIAL CORP A SUBSIDIARY OF FREMONT GENERAL CORP AT FIVE PERCENTAGE POINTS OVER THE PRIME LENDING RATE THE LINE OF CREDIT WHICH WILL BE USED FOR WORKING CAPITAL REPLACES THE COSMETICS CONCERN'S PREVIOUS CREDIT LINE WITH A UNIT OF NATIONSBANK CORP TRISTAR FORMERLY KNOWN AS ROSS COSMETICS DISTRIBUTION CENTERS INC SAID THE NATIONSBANK AGREEMENT WAS SET AT THREE PERCENTAGE POINTS OVER PRIME BUT THAT THE FREMONT LINE OF CREDIT REMOVES SOME WORKINGCAPITAL CONSTRAINTS 9310150154 931015 SMALL BUSINESS A SPECIAL REPORT OPENERS TWENTYTWENTY HINDSIGHT IF ONLY I COULD START OVER AGAIN EVERYONE SAYS IT SOONER OR LATER USUALLY IN MOMENTS OF FRUSTRATION OR DESPAIR THOUGH STARTING A BUSINESS CAN BE TERRIFYING NEOPHYTES HAVE AT LEAST ONE ADVANTAGE OVER VETERANS THEY DON'T YET HAVE TO LIVE WITH THEIR MISTAKES WE ASKED SOME EXPERIENCED HANDS WHAT THEY WOULD DO IF THEY COULD ONLY START OVER HERE'S WHAT THEY SAID ALL WORK AND NO PLAY IF SHE COULD START OVER AGAIN RACHELLE NACHT WOULD DO THREE THINGS DIFFERENTLY SHE WOULD HIRE A SALES MANAGER TO HANDLE HER SALESPEOPLE SHE WOULD SLOW HER FRENETIC PACE AND SHE WOULD BUILD A WALL BETWEEN HER PROFESSIONAL LIFE AND HER LOVE LIFE MS NACHT 33 SAYS THAT WHEN SHE LAUNCHED MORTGAGE MATCH INC A MORTGAGEBROKERAGE FIRM IN APRIL 1990 SHE WANTED TO CONQUER THE WORLD I'M A COMPULSIVE WORKER STRONGWILLED THE TYPE OF PERSON WHO KEEPS GOING AND GOING AND GOING SHE SAYS SHE SAYS SHE OFTEN WORKED 20HOUR DAYS UNTIL I DROPPED BUT LOOKING BACK SHE SAYS SHE REALIZES THAT BY TRYING TO DO EVERYTHING SHE SPREAD HERSELF TOO THIN AS A RESULT SHE HIRED HER SALES REPS TOO QUICKLY AND SPENT TOO LITTLE TIME WITH THEM A SALES MANAGER WOULD HAVE GIVEN THEM MORE GUIDANCE SHE SAYS SHE ALSO CONCEDES THAT HER OBSESSION WITH HER NEW COMPANY TOOK A PERSONAL TOLL I HAD NO LIFE FOR 2 1/2 OR THREE YEARS SHE SAYS I MIGHT HAVE PACED MYSELF MORE HER OTHER BIG REGRET IS HAVING RENTED A BUILDING WITH HER BOYFRIEND FOR THEIR SEPARATE VENTURES THE TWO BROKE UP BUT STILL HAD TO SHARE THE QUARTERS IT WAS A VERY UGLY SITUATION FOR A LONG TIME SHE SAYS MARC B NATHANSON FOUNDER AND CHAIRMAN OF FALCON HOLDING GROUP SAYS IF HE HAD IT TO DO OVER AGAIN HE WOULD HAVE EXPANDED HIS CABLETELEVISION SYSTEM MORE AGGRESSIVELY EVEN IF IT MEANT GIVING MORE EQUITY OR TAKING ON MORE DEBT I WOULD HAVE BOUGHT MORE CABLE SYSTEMS IN THE 1970S HE SAYS AND THIS IS FROM SOMEBODY WITH 2 BILLION IN DEBT HE ADDS THOUGH MR NATHANSON 48 HAS CREATED ONE OF THE LARGER CABLE SYSTEMS IN THE COUNTRY HE SAYS THAT FALCON NEEDS TO BE BIGGER AS CABLE FIRMS CONSIDER STRATEGIC ALLIANCES WITH PHONE COMPANIES IN THIS ATMOSPHERE TWO MILLION SUBSCRIBERS IS BETTER THAN ONE MILLION SAYS MR NATHANSON HE SAYS ONE OF HIS GOALS IS TO SUBSTANTIALLY INCREASE FALCON'S SUBSCRIBER BASE IF I HAD TO DO IT OVER AGAIN I'D TRY TO PICK ON SOMEBODY OTHER THAN BILL GATES SAYS KEVIN HARVEY WHOSE COMPANY MARKETS DATABASE SOFTWARE BUT THE 28YEAROLD MR HARVEY WHO FOUNDED APPROACH SOFTWARE CORP REDWOOD CITY CALIF KNOWS IT IS HARD TO ESCAPE THE LEGENDARY MICROSOFT CORP CHAIRMAN IF YOUR COMPANY IS IN SOFTWARE YOU'RE PRETTY MUCH COMPETING WITH HIM MR HARVEY SAYS LAST SUMMER APPROACH MERGED WITH MUCH LARGER LOTUS DEVELOPMENT CORP CAMBRIDGE MASS THE IDEA IS TO GIVE APPROACH MORE MARKETING MUSCLE IN THE COMPETITIVE STRUGGLE AGAINST GIANT MICROSOFT I WOULD PERHAPS HAVE FOUND A PARTNER EVEN THOUGH I KNOW A GOOD PARTNERSHIP IS AS TRICKY AS A GOOD MARRIAGE SAYS BETH TONDREAU OWNER OF BETH TONDREAU DESIGN A NEW YORK BOOKDESIGN CONCERN SHE SAYS THAT WHEN SHE WAS STARTING OUT IN 1985 SHE COULD HAVE USED THE ADVICE OF A PARTNER WITH BUSINESS EXPERIENCE ESPECIALLY WHEN SHE WAS NEGOTIATING HER FIRST JOBS WITH PUBLISHERS AS SOMEONE WHO POSSESSED MAINLY CREATIVE DESIGN SKILLS SHE SAYS SHE OFTEN WAS MORE CONCERNED WITH THE QUALITY OF HER WORK THAN WITH WHAT SHE CHARGED FOR IT I'M SURE I DIDN'T TURN AWAY ENOUGH LOWPAYING BUSINESS SHE SAYS MS TONDREAU 44 SAYS THAT SHE SHOULD HAVE AT LEAST HIRED A FREELANCE CONSULTANT WHO COULD COMPUTE HOW MUCH SHE SHOULD CHARGE FOR NEW WORK IN FACT HER FIRM BEGAN USING SUCH AN EXPERT LAST YEAR STEVE BROWN THE FOUNDER OF FORTUNE GROUP INTERNATIONAL INC ATLANTA SAYS HIS BIG MISTAKE WAS PUTTING ALL HIS EGGS IN ONE BASKET FORTUNE GROUP FOUNDED IN 1970 TRAINED WORKERS FOR THE REALESTATE INDUSTRY MR BROWN SAYS THAT HAD HE DIVERSIFIED INTO OTHER AREAS HE COULD HAVE MORE EASILY WEATHERED THE REALESTATE SLUMP IN THE EARLY 1980S NOW THE COMPANY TRAINS WORKERS FOR EVERY TYPE OF INDUSTRY FROM PRINTING TO HEALTH CARE AND IS PROSPERING THE ENTREPRENEUR ADDS MR BROWN ALSO SAYS THAT IF HE WERE STARTING OVER HE WOULD PAY MORE MORE ATTENTION TO HIS PERSONAL FINANCES THAN HE DID I'VE EARNED A LOT OF MONEY BUT I WISH I HAD DEVELOPED THE EXPERTISE TO INVEST THAT MONEY BETTER HE SAYS FINALLY THE 56YEAROLD MR BROWN SAYS HE WISHES HE HAD SPENT MORE TIME WITH HIS FIRST TWO CHILDREN WHO ARE NOW 40 AND 35 HE SAYS HE DOES JUST THAT WITH HIS TWO TEENAGE CHILDREN FROM A SECOND MARRIAGE THIS EXPERIENCE HAS MADE HIM REALIZE THAT WITH THE OLDER ONES I MISSED SEEING A LOT OF THEIR GROWTH I'D DO EVERYTHING DIFFERENTLY SAYS JUDY ARNOLD PRESIDENT AND COOWNER OF DUFOUR PASTRY KITCHENS INC A NEW YORK CITY MAKER OF GOURMET HORS D'OEUVRES AND PASTRY DOUGHS MS ARNOLD AND PARTNER CARLA KRASNER KNEW NOTHING ABOUT RUNNING A BUSINESS WHEN THEY LAUNCHED DUFOUR PASTRY IN 1984 AND THEREFORE LEARNED BY MAKING MISTAKES SHE SAYS IF SHE HAD IT TO DO OVER AGAIN MS ARNOLD WOULD BRING IN A PRODUCTIONMANAGEMENT CONSULTANT INVEST IMMEDIATELY IN SOPHISTICATED EQUIPMENT BE MORE CAREFUL IN HIRING PEOPLE ACTUALLY THE 58YEAROLD MS ARNOLD SAYS SHE AND MS KRASNER DID ONE THING RIGHT BY ACCIDENT THEY CHOSE A LOCATION IN MANHATTAN'S MEAT DISTRICT BECAUSE IT WAS SO CHEAP THEY DIDN'T REALIZE THE VALUE OF THE LOCATION'S OTHER ASSETS SUCH AS EASY TRUCK ACCESS AND THE AVAILABILITY OF CHEAP FREEZER SPACE NEARBY WE STUMBLED INTO A GOOD THING SHE SAYS DESPITE THE MISSTEPS THE ENTREPRENEURS BUILT DUFOUR PASTRY INTO A SUCCESSFUL COMPANY THAT TODAY COUNTS 30 EMPLOYEES ONE REASON THEY NEVER LOST SIGHT OF THEIR GOAL MY ENTREPRENEURIAL VISION OF DOING WHAT I'M DOING THAT'S ONE THING I WOULDN'T CHANGE MS ARNOLD SAYS RALPH ADAMS SAYS HE WOULD LIKE TO START OVER BECAUSE THERE ARE SO MANY THINGS HE WOULD DO DIFFERENTLY SEVEN YEARS AGO HE FOUNDED LAZARUS GROUP INC A TOPEKA KAN COMPANY WHOSE PRINCIPAL SUBSIDIARY ADAMSVAN DYKE BROKERS INVESTMENTS MAINLY IN BANK CERTIFICATES OF DEPOSIT FIRST OF ALL HE SAYS HE WOULD HAVE WAITED UNTIL HE HAD FIVE TO SEVEN YEARS OF EXPERIENCE AT BROKERING BANK DEPOSITS BEFORE STARTING HIS OWN FIRM HE ACTUALLY HAD LESS THAN THREE YEARS EXPERIENCE IN THE FIELD CONSEQUENTLY MR ADAMS 44 SAYS HE UNDERESTIMATED EXPENSES INCLUDING PAYROLL AND MARKETING COSTS FOR THE FIRST THREE YEARS CASH FLOW WAS SO TIGHT HE HAD TO BORROW 150000 OF WHICH 25000 IS STILL OUTSTANDING FINALLY MR ADAMS SAYS HE WOULDN'T HAVE FOCUSED THE COMPANY'S BUSINESS SO NARROWLY ON CDS INDEED LAST YEAR HE DIVERSIFIED HIS BROKERAGE FIRM TO INCLUDE ANNUITIES AND COMMERCIAL PAPER I WOULD LISTEN MORE TO ACCOUNTANTS AND LESS TO LAWYERS SAYS TOM ANGELL PRESIDENT OF INTERFACE VIDEO SYSTEMS INC A WASHINGTON DC VIDEOPRODUCTION COMPANY LAWYERS ARE KIND OF PAID TO SAY NO' AND THEY LIKE TO ADMIRE THE ELEGANCE OF THE PROBLEM MR ANGELL 61 ADDS GOOD ACCOUNTING PEOPLE CAN OFTEN GIVE YOU A LOT MORE INSIGHT INTO WHETHER OR NOT THE NUMBERS WILL WORK JOHN AND JILL VOORHIS COOWN EXTRA EXTRA GRAPHICS A DESIGN AND PRINTING COMPANY IN ST PETERSBURG FLA FORMED IN 1987 THE COMPANY NOW HAS NEARLY 500000 IN ANNUAL SALES IF THE COUPLE COULD START OVER THE 39YEAROLD MR VOORHIS SAYS HE WOULD RELY MORE ON OUTSIDE HELP TO ORGANIZE THE BUSINESS AS IT WAS INSTEAD OF HAVING PAID SOMEONE ELSE TO PUT TOGETHER ACCOUNTING AND OTHER BUSINESS RECORDS NEEDED TO OBTAIN FINANCING MR VOORHIS A FORMER CPA DID THE WORK HIMSELF AS A RESULT HE SAYS HE DEVOTED TOO LITTLE TIME TO OTHER IMPORTANT TASKS SUCH AS OBTAINING EQUIPMENT LEASES HAD HE SPENT MORE TIME LOOKING MR VOORHIS ESTIMATES HE COULD HAVE SAVED 200 TO 300 A MONTH IN LEASE PAYMENTS ON ONE MACHINE ALONE CRAIG DREILINGER THE FOUNDER OF THE DREIFORD GROUP A MANAGEMENTCONSULTING FIRM IN BETHESDA MD SAYS ONE THING HE HAS LEARNED IS FRIENDSHIPS AREN'T GOOD FOR BUSINESS THAT LESSON RESULTED FROM HIS HAVING GIVEN LUCRATIVE CONSULTING JOBS TO TWO FRIENDS EVEN THOUGH THEY WEREN'T THE BEST TALENT AVAILABLE FORTUNATELY HE SAYS A CLIENT TOOK HIM ASIDE AND SAID YOU HAVE TO FOCUS ON OUR INTERESTS NOT YOUR FRIENDS' INTEREST IF HE WERE STARTING OVER THE 43YEAROLD DR DREILINGER SAYS I WOULD BASE BUSINESS DECISIONS ON ONLY ONE CRITERION IS THIS DECISION CONSISTENT WITH MY BUSINESS GOALS ONCE YOU KNOW YOUR BUSINESS IS A WINNER TRY TO BUY YOUR OFFICE SPACE SAYS THOMAS VAN CLEAVE WHO STARTED WINDMILL CITY TRAVEL INC IN BATAVIA ILL 13 YEARS AGO MR VAN CLEAVE 43 STILL LEASES HIS SPACE AND HE THINKS THAT'S A BIG MISTAKE I WOULD LOOK FOR OTHER AVENUES OF RAISING MORE CAPITAL DURING THE STARTUP PHASE SO I COULD OWN MY OWN BUILDING SAYS MR VAN CLEAVE IT'S JUST SO DIFFICULT TO BUILD UP ENOUGH ASSETS IN THE TRAVEL BUSINESS SO YOU CAN GET LOANS TO BUY A BUILDING RICHARD ISRAEL FOUNDER AND PRESIDENT OF LOS ANGELESBASED SPONSORED CONSULTING SERVICES SAYS HE WISHES THAT WHEN HE STARTED HIS INVESTMENTBANKING FIRM IN 1973 HE HAD PAID MORE ATTENTION TO DEVELOPING BUSINESS IN THE HINTERLANDS HE SAYS HE FOCUSED TOO MUCH ON DEALS IN LOS ANGELES NEW YORK AND CHICAGO THERE WAS MONEY TO BE MADE IN OTHER PLACES SAYS MR ISRAEL 62 I SHOULD HAVE BEEN MORE AGGRESSIVE AIM CAREFULLY WHEN YOU'RE STARTING UP SAYS KENNETH HELLER OWNER OF NU TECH ENVIRONMENTAL CORP THE DENVER COMPANY FOUNDED 10 YEARS AGO MAKES ODORCONTROL TECHNOLOGIES FOR MUNICIPALWASTE AND FOODPROCESSING FACILITIES ONE OF THE MISTAKES WE MADE WAS THAT WE DIDN'T UNDERSTAND OUR MARKET TOO WELL SAYS MR HELLER 54 WHEN YOU HAVE A TECHNOLOGY THAT'S NOT ENOUGH YOU ALSO NEED TO KNOW HOW TO SELL TO POTENTIAL BUYERS OF THE PRODUCT MR HELLER SAYS HE WASTED TWO YEARS COLDCALLING A BROAD ARRAY OF POTENTIAL CUSTOMERS UNTIL HE BEGAN TARGETING SPECIFIC INDUSTRIES THAT HAD A DEFINITE USE FOR HIS PRODUCT A BUSINESS PLAN MIGHT HAVE BEEN HELPFUL SAYS KEVIN CODY FOUNDER AND OWNER OF THE EASY READER A WEEKLY NEWSPAPER IN HERMOSA BEACH CALIF FOR ABOUT THE FIRST 10 YEARS AFTER FOUNDING THE PAPER IN 1970 I NEVER HAD A BUDGET HE SAYS MR CODY 44 SAYS THAT WHILE THIS LACK OF PLANNING PROBABLY MADE IT HARDER TO RUN HIS BUSINESS EFFICIENTLY IT ALSO HAD AN UPSIDE IF I'D PLANNED IT I MIGHT HAVE DECIDED IT COULDN'T WORK AND FOLDED HE SAYS ROBERT WILLIAMS SAYS HE WOULDN'T START HIS BUSINESS OVER AT ALL IF HE COULDN'T RAISE ALL THE MONEY HE NEEDED IN 1990 MR WILLIAMS LAUNCHED PLATTSBURGH COMPUTERS A COMPUTERSOFTWARE COMPANY IN PLATTSBURGH NY THE COMPANY SELLS A DATABASE OF STATISTICAL COMPARISONS THAT HELPS GAMBLERS IN THEIR EFFORTS TO PICK WINNING FOOTBALL TEAMS UNABLE TO RAISE 50000 FROM PRIVATE INVESTORS OR BANKS MR WILLIAMS SAYS HE FINANCED THE COMPANY WITH ONLY 20000 IN SAVINGS AND CASH FLOW HE EVENTUALLY REINVESTED AS A RESULT HE SAYS I'VE NEVER HAD A SUSTAINED MARKETING CAMPAIGN BECAUSE I'VE NEVER HAD THE MONEY HIS COMPANY CURRENTLY RUNS ONLY ONE ADVERTISEMENT IN A TRADE JOURNAL MOREOVER IT HAS NEVER BEEN ABLE TO AFFORD TO PACKAGE THE PRODUCT FOR SALE IN RETAIL STORES TODAY PLATTSBURGH HAS ONLY 170 CUSTOMERS AND GENERATES ANNUAL SALES OF LESS THAN 20000 THE COMPANY'S MEAGER GROWTH HASN'T BEEN WORTH THE FRUSTRATION THE 41YEAROLD MR WILLIAMS SAYS I'M THINKING NOW THAT THIS IS THE LAST YEAR I'LL TRY TO GET NEW CUSTOMERS THOUGH HE WILL CONTINUE TO UPDATE THE INFORMATION ON THE COMPUTER PROGRAMS HE HAS ALREADY SOLD 9310150153 931015 GRAFF PLANS TO BUY PSP HOLDING NEW YORK GRAFF PAYPERVIEW INC SIGNED A LETTER OF INTENT TO ACQUIRE PSP HOLDING INC FOR AN UNDISCLOSED AMOUNT OF GRAFF STOCK THE COMPANY SAID THE TRANSACTION WILL BE A MERGER OF PSP HOLDING AND GRAFF'S GUEST CINEMA INC UNIT GUEST CINEMA MARKETS PAYPERVIEW MOVIES TO HOTELS AND MOTELS PSP SANTA MONICA CALIF DEVELOPS PROPRIETARY SOFTWARE THAT ALLOWS HOTEL GUESTS WITH CREDIT CARDS TO ORDER PAYPERVIEW BY TELEPHONE GRAFF NEW YORK IS AN INDEPENDENT PAYPERVIEW PROGRAMMER AND NETWORK OPERATOR WITH THREE NETWORKS OFFERING 10 CHANNELS 9310150151 931015 YOUR MONEY MATTERS WEEKEND REPORT SO YOU REALLY WANT TO PLAY THE MERGER GAME BY EARL C GOTTSCHALK JR STAFF REPORTER OF THE WALL STREET JOURNAL THE TALK AROUND THE WATER COOLER IN MANY OFFICES THESE DAYS HAS SUDDENLY SHIFTED FROM THE WORLD SERIES TO QUESTIONS THAT WERE MORE COMMON IN THE MERGERCRAZED 1980S WHAT DO YOU DO WHEN A STOCK YOU OWN IS SUDDENLY PUT INTO PLAY CAN YOU STILL GET IN ON THE ACTION ONCE THE NEWS IS OUT AND DOES THE LITTLE GUY REALLY STAND A CHANCE IN A BUSINESS DOMINATED BY PROFESSIONAL ARBITRAGERS THE WALL STREET GUNSLINGERS WHO MAKE AND LOSE FORTUNES IN THE LIGHTNINGFAST RUMORFILLED WORLD OF CORPORATE TAKEOVERS DECIDING WHAT STOCK WILL TURN OUT TO BE A REAL WINNER ESPECIALLY IF YOU ARE PUTTING REAL MONEY ON THE LINE IS A LOT TOUGHER THAN FIGURING OUT WHETHER THE PHILLIES OR THE BLUE JAYS ARE MORE LIKELY TO COME OUT ON TOP IN BASEBALL'S FALL CLASSIC BUT WITH THE ANNOUNCEMENT OF BELL ATLANTIC CORP'S PROPOSED MULTIBILLIONDOLLAR ACQUISITION OF TELECOMMUNICATIONS INC EVEN CASUAL INVESTORS ARE FINDING THEMSELVES CAUGHT UP IN THE EXCITEMENT AS A NEW WAVE OF MERGERS AND ACQUISITIONS SWEEPS THROUGH THE MEDIA HEALTHCARE FINANCIALSERVICES AND UTILITY INDUSTRIES IT'S A DANGEROUS GAME FOR THE INDIVIDUAL SAYS TOM COLLINS OWNER OF FLAMINGO MOBILE HOMES IN ATHENS GA AND AN ACTIVE INVESTOR THE SMALL INVESTOR DOESN'T HAVE THE CONNECTIONS TO KNOW WHAT IS COMING NEXT INDIVIDUAL INVESTORS WHO ALREADY HOLD STOCKS INVOLVED IN MERGERS FIND THEMSELVES IN AN IMMEDIATE QUANDARY ABOUT WHETHER TO SELL NOW AND NAIL DOWN THEIR GAINS OR TO HOLD ON IN THE HOPE OF EVEN HIGHER PRICES IF NEW SUITORS ENTER THE GAME INVESTMENT PROS SAY THE DECISION CALLS FOR SOME HARD STUDY OF THE CURRENT SITUATION AN INTROSPECTIVE LOOK BACK ON WHY YOU BOUGHT THE STOCK IN THE FIRST PLACE AND A SERIOUS EFFORT TO LOOK AHEAD AT THE PROSPECTS FOR THE INDUSTRY YOU ALSO MUST CONSIDER WHETHER YOU WANT TO TAKE A HEFTY CAPITALGAINS TAX HIT IF YOU'VE HELD THE STOCK FOR SOME TIME AND ARE SHOWING A BIG PAPER PROFIT IF YOU BOUGHT A STOCK FOR A SHORTTERM PLAY HANGING ON FOR THE ABSOLUTE BEST PRICE COULD BE A MISTAKE SOME PROFESSIONAL INVESTORS AND ADVISERS SAY IF YOU FEEL ALL THE NEWS IS OUT THE SUITORS HAVE PLAYED THEIR CARDS IT'S TIME TO EXIT AND LEAVE IT TO THE PROFESSIONAL ARBITRAGERS SAYS JOHN MARKESE PRESIDENT OF THE AMERICAN ASSOCIATION OF INDIVIDUAL INVESTORS REMEMBER THAT UNFORESEEN THINGS HAPPEN AND DEALS SOMETIMES FALL APART EVERY CASE MUST BE STUDIED ON ITS OWN MERITS BUT GUY WYSERPRATT A VETERAN PROFESSIONAL ARBITRAGER SAYS THAT THE AVERAGE STOCK IN PLAY FROM 1986 TO 1992 SHOWED A REMAINING UPSIDE POTENTIAL OF ONLY 5 AFTER THE MERGER WAS ANNOUNCED INVESTORS WHO WANT TO HEDGE THEIR BETS MIGHT SELL HALF THEIR HOLDINGS SAYS MICHAEL METZ INVESTMENT STRATEGIST FOR OPPENHEIMER & CO MR METZ SAYS HE THINKS THERE'S AN ABSOLUTE SPECULATIVE FRENZY IN THE TELECOMMUNICATIONS BUSINESS AND BELIEVES INVESTORS WILL FIND THE PRICES OF THESE STOCKS VERY RICH THIS VIEW EXTENDS BEYOND TCI AND PARAMOUNT COMMUNICATIONS INC THE MOVIE AND PUBLISHING GIANT AT THE CENTER OF A HEADLINEGRABBING BATTLE BETWEEN VIACOM INC AND QVC NETWORK INC THERE WILL BE AS MANY LOSERS AS WINNERS IN TELECOMMUNICATIONS A LOT OF COMPANIES IN THIS BUSINESS WON'T EXIST IN TWO YEARS SAYS MR METZ ON THE OTHER HAND IF YOU'RE A LONGTERM INVESTOR IN PARAMOUNT AND TCI THINK HARD ABOUT YOUR BELIEF IN THE FUTURE OF TELECOMMUNICATIONS BEFORE YOU SELL THESE STOCKS IF YOU BELIEVE ALONG WITH MANY PROS THAT THE GLOBAL TELECOMMUNICATIONS REVOLUTION IS GOING TO PROVE TO BE ONE OF THE MAJOR PROFITMAKING OPPORTUNITIES OF THE NEXT DECADE IT'S WORTH IT TO HOLD YOUR STOCKS EVERY PORTFOLIO OUGHT TO HAVE SOME EXPOSURE TO COMMUNICATIONS SINCE IT'S GOING TO BE ONE OF THE MOST RAPIDLY GROWING AREAS IN THE WORLD ECONOMY SAYS MARSHALL FRONT SENIOR EXECUTIVE VICE PRESIDENT OF STEIN ROE & FARNHAM INC A CHICAGO INVESTMENT MANAGEMENT FIRM MR FRONT THINKS IT'S PREMATURE TO SELL PARAMOUNT AND TCI BECAUSE THE BUYERS ARE BIG SERIOUS AND HAVE MEGABUCKS THEY ARE DESPERATE TO GAIN A STAKE IN THE COMMUNICATIONS WORLD THEY SEE AHEAD HE SAYS IF I ALREADY OWNED TELECOMMUNICATIONS I'D CONTINUE TO HOLD IT SAYS ROBERT FOMON GENERAL PARTNER IN EASTWEST PARTNERS A NEW YORK GLOBAL STOCK HEDGE FUND THERE'S A STRONG LONGTERM STRATEGIC REASON TO HOLD THE STOCK INSTEAD OF TAKING A PROFIT NOW AND PAYING THE 28 CAPITALGAINS TAX SAYS MR FOMON MR COLLINS THE GEORGIA INVESTOR OWNS BOTH PARAMOUNT AND TCI I'VE HAD MODEST GROWTH IN THESE TWO STOCKS AND IT WOULDN'T BE SMART FOR ME TO PAY TAXES ON THE GAINS NOW HE SAYS I'M GOING TO RIDE IT OUT AND LET THEM TAKE ME OUT AT TOP DOLLAR BUT WHAT IF YOU DON'T ALREADY OWN THE STOCK CAN YOU STILL GET IN ON THE PLAY MOST PROS DON'T THINK IT'S A GOOD IDEA FOR INDIVIDUAL INVESTORS TO BUY A STOCK AFTER A MERGER HAS BEEN ANNOUNCED IT'S TOO RISKY FOR INDIVIDUALS BECAUSE YOU'RE COMPETING WITH PROFESSIONAL ARBITRAGERS WHO HAVE ACCESS TO UPTOTHEMINUTE INFORMATION AND ARE AT IT FULLTIME SAYS MR MARKESE MR WYSERPRATT THE NEW YORK ARBITRAGER SAYS EVERY CASE MUST BE EVALUATED ON A RISKREWARD BASIS AND MOST PEOPLE DON'T HAVE THE FACILITIES AND COMPUTER SOFTWARE TO MAKE THE ASSESSMENT IN ADDITION PROFESSIONAL ARBITRAGERS ARE INVOLVED IN 40 OR 50 OF THESE SITUATIONS ALL AROUND THE WORLD AT ONCE IF ONE OR TWO DEALS FALL APART THEY'RE NOT SERIOUSLY AFFECTED MOST INDIVIDUALS ARE PLAYING ONLY ONE OR TWO STOCKS SO THE IMPACT OF A BAD DECISION OR JUST BAD LUCK IS A LOT GREATER ONE WAY FOR INDIVIDUALS WITH LIMITED CAPITAL TO BROADEN THEIR DIVERSIFICATION IS TO BUY OPTIONS ON MERGER STOCKS RATHER THAN THE STOCKS THEMSELVES A STOCK OPTION GIVES THE HOLDER THE RIGHT TO BUY A CALL OR SELL A PUT A SPECIFIC NUMBER OF SHARES OF STOCK AT A FIXED PRICE WITHIN A DEFINITE TIME PERIOD MANY INDIVIDUAL INVESTORS USE OPTIONS TO GAIN LEVERAGE AND TO LIMIT RISK BECAUSE OPTIONS CAN BE BOUGHT FOR A FRACTION OF THE COST OF THE UNDERLYING SHARES OPTION ACTIVITY IS STRONG IN PARAMOUNT TCI AND OTHER COMMUNICATIONS STOCKS SAYS BERNARD SCHAEFFER PUBLISHER OF OPTION ADVISER A CINCINNATI NEWSLETTER INVESTORS ARE BUYING OPTIONS ON MERGERS THAT HAVE ALREADY BEEN ANNOUNCED AND ON POTENTIAL MERGER CANDIDATES HE SAYS BUT OPTIONS HAVE THEIR OWN RISKS MR SCHAEFFER SAYS SINCE THE PERIOD IN WHICH AN OPTION CAN BE EXERCISED EVENTUALLY RUNS OUT TIMING IS CRUCIAL IT'S PRETTY TOUGH TO BE RIGHT AND IT'S EVEN TOUGHER TO BE RIGHT IN A PARTICULAR PERIOD OF TIME HE SAYS AND THAT'S WHAT OPTIONS FORCE YOU TO DO MR SCHAEFFER SUGGESTS THAT IF YOUTHE MERGER GAME WITH OPTIONS SPECULATE WITH MONEY THAT YOU CAN ABSOLUTELY AFFORD TO LOSE THE BIG PROFIT POTENTIAL IS BUYING OPTIONS ON MERGER CANDIDATES THAT HAVEN'T YET BEEN ANNOUNCED BUT PICKING THE RIGHT ONE IN A LIMITED TIME PERIOD IS EQUIVALENT TO WINNING THE LOTTERY SAYS MR SCHAEFFER IT'S POSSIBLE FOR INVESTORS TO PLAY THE MERGER GAME BY BUYING MUTUAL FUNDS IF YOU WANT A DIRECT APPROACH YOU CAN BUY THE MERGER FUND A SMALL MOUNT KISCO NY NOLOAD FUND THAT INVESTS IN STOCKS OF COMPANIES THAT ARE OBJECTS OF PUBLICLY ANNOUNCED ACQUISITION OR REORGANIZATION PROPOSALS IT'S A LOWRISK VEHICLE THAT GENERATES DECENT RETURNS BUT USUALLY UNDERPERFORMS IN A BULL MARKET SAYS KEN GREGORY EDITOR OF NOLOAD FUND ANALYST A SAN FRANCISCO NEWSLETTER ANOTHER APPROACH IS TO INVEST IN VALUESTYLE MUTUAL FUNDS THAT INVEST IN UNDERVALUED SECURITIES SAYS MR GREGORY ONE VALUESTYLE FUND THAT HISTORICALLY HAS TURNED UP MANY MERGERS AND BUYOUTS IN THE TELECOMMUNICATIONS GROUP IS GABELLI ASSET FUND A NOLOAD FUND RUN BY VALUE INVESTOR MARIO GABELLI GABELLI ASSET HAS LARGE STAKES IN PARAMOUNT AND TCI THE FUND'S TOTAL RETURN FOR THE FIRST NINE MONTHS OF 1993 WAS 188 WHILE ITS CUMULATIVE FIVEYEAR RETURN WAS 1001 SHELDON JACOBS EDITOR OF NOLOAD FUND INVESTOR AN IRVINGTON NY NEWSLETTER RECOMMENDS MUTUAL SHARES MUTUAL QUALIFIED AND MUTUAL BEACON FUNDS AS A WAY TO PLAY THE TREND THESE FUNDS ALL INVEST AS MUCH AS 50 OF THEIR ASSETS IN COMPANIES INVOLVED IN MERGERS CONSOLIDATIONS LIQUIDATIONS AND REORGANIZATIONS MUTUAL SHARES AND MUTUAL QUALIFIED ARE CLOSED TO NEW INVESTORS BUT MUTUAL BEACON IS OPEN ITS TOTAL RETURN WAS 183 FOR THE YEAR THROUGH SEPT 30 89 FOR THE PAST FIVE YEARS AND 269 FOR 10 YEARS 9310150150 931015 WHO'S NEWS CAPITAL BANK CAPITAL BANK MIAMI DAVID KONFINO FORMERLY A SENIOR VICE PRESIDENT OF NATIONSBANK CORP WAS NAMED EXECUTIVE VICE PRESIDENTINTERNATIONAL FOR THIS BANKING COMPANY MR KONFINO 46 YEARS OLD SUCCEEDS ALEX HALBERSTEIN 59 WHO LEFT IN MAY TO PURSUE OTHER OPPORTUNITIES CAPITAL BANK IS A UNIT OF CAPITAL BANCORP 9310150149 931015 WHO'S NEWS BROWN GROUP INC BROWN GROUP INC ST LOUIS S DONLEY RITCHEY FORMERLY CHAIRMAN OF LUCKY STORES INC WAS ELECTED A DIRECTOR OF THIS FOOTWEAR AND SPECIALTY RETAILING CONCERN INCREASING BOARD MEMBERSHIP TO 11 9310150148 931015 CANADA PLANS ISSUE OF NEW 12YEAR BONDS OTTAWA THE CANADIAN GOVERNMENT SAID IT WILL ISSUE A NEW SERIES OF 12YEAR CANADA SAVINGS BONDS WHICH WILL YIELD 425 IN THE YEAR STARTING NOV 1 THE BONDS ARE SCHEDULED TO GO ON SALE MONDAY YIELDS FOR SUBSEQUENT YEARS WILL BE SET ANNUALLY ONLY CANADIAN RESIDENTS ARE PERMITTED TO BUY CANADA SAVINGS BONDS WHICH MAY BE REDEEMED AT ANY TIME AT FACE VALUE THE GOVERNMENT CURRENTLY HAS 3258 BILLION CANADIAN DOLLARS US2452 BILLION OF CANADA SAVINGS BONDS OUTSTANDING THE GOVERNMENT HAS LIMITED TO C100000 US75260 THE AMOUNT OF NEW BONDS AN INDIVIDUAL MAY BUY INVESTORS MAY ALSO CONVERT OLD CANADA SAVINGS BONDS MATURING THIS YEAR INTO THE NEW ISSUE 9310150147 931015 WHO'S NEWS ANNTAYLOR STORES CORP ANNTAYLOR STORES CORP NEW YORK CRAIG B SORRELS 38 YEARS OLD WAS NAMED SENIOR VICE PRESIDENT REAL ESTATE STORE PLANNING AND CONSTRUCTION OF THIS SPECIALTY WOMEN'S APPAREL RETAILER'S ANN TAYLOR UNIT EFFECTIVE NOV 1 MR SORRELS ALSO WILL BE A MEMBER OF THE ANNTAYLOR EXECUTIVE COMMITTEE SINCE FEBRUARY MR SORRELS HAS BEEN A REALESTATE CONSULTANT FOR A NUMBER OF LEADING RETAILING ORGANIZATIONS BEFORE THAT HE WAS SENIOR VICE PRESIDENT OF DEVELOPMENT AND BUSINESS STRATEGY FOR DISNEY STORES INC A UNIT OF WALT DISNEY CO 9310150146 931015 WHO'S NEWS CHASE MANHATTAN CORP CHASE MANHATTAN CORP NEW YORK ROBERT R DOUGLASS VICE CHAIRMAN WILL RETIRE OCT 31 THE COMPANY SAID MR DOUGLASS 61 YEARS OLD WAS THE COMPANY'S CHIEF CLIENT RELATIONS OFFICER A SPOKESMAN FOR CHASE SAID THERE ARE CURRENTLY NO PLANS TO NAME ANYONE TO SUCCEED MR DOUGLASS AND IT'S NOT CLEAR HOW HIS DUTIES WILL BE APPORTIONED THE OTHER VICE CHAIRMAN IS RICHARD BOYLE MR DOUGLASS SAID HE IS RETIRING IN ORDER TO CONCENTRATE ON OTHER INTERESTS INCLUDING BUSINESS OPPORTUNITIES IN LAW AND BANKING DURING HIS CAREER HE OVERSAW THE COMPANY'S NATIONAL EXPANSION EFFORTS CORPORATE PLANNING INVESTMENT BANKING AND OTHER BUSINESSES 9310150145 931015 INDUSTRY FOCUS BELLTCI TIEUP GIVES CABLE INDUSTRY MERGER FEVER WALL STREET BETS THE FEAR OF FALLING BEHIND WILL SPUR MORE COMBINATIONS BY MARK ROBICHAUX STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK CABLE HAS THE URGE TO CONVERGE IN THE WAKE OF THE PROPOSED MEGADEAL OF BELL ATLANTIC CORP AND TELECOMMUNICATIONS INC MERGER FEVER IS RUNNING HIGH AMONG THE NATION'S CABLE OPERATORS FROM MOMANDPOP OPERATIONS TO THE INDUSTRY GIANTS WALL STREET IS BETTING THE FEAR OF FALLING BEHIND WILL SPUR A RASH OF FRESH DEALS IN THE PAST THREE DAYS INVESTORS HAVE FURIOUSLY GOBBLED UP CABLE STOCKS DRIVING UP THE PRICE OF SOME MORE THAN 20 FOR EXAMPLE COMCAST CORP OPENED TRADING AT 3437 ON TUESDAY THE DAY BEFORE THE BELL ATLANTICTCI ANNOUNCEMENT BY YESTERDAY ITS CLASS A VOTING SHARES HAD REACHED 40625 UP 1 ON THE DAY IN NATIONAL OVERTHECOUNTER TRADING CABLEVISION SYSTEMS CORP CLASS A STOCK WHICH OPENED TRADING AT 5375 ON TUESDAY CLIMBED 2 YESTERDAY TO 65625 IN COMPOSITE TRADING ON THE AMERICAN STOCK EXCHANGE IT'S OBVIOUS THAT THE MARKET BELIEVES THAT THE REMAINING CABLE COMPANIES WILL RECEIVE INVITATIONS FROM PHONE COMPANIES TO TALK SAYS MR REIDY BUT AS TELEPHONE COMPANIES SIZE UP THE BEST PICKS OF THE CABLE COMPANIES STILL AVAILABLE AND WILLING TO DO A DEAL ONE THING IS CLEAR NOTHING OUT THERE APPROACHES THE CLOUT OF TCI TIME WARNER INC OWNS THE SECONDLARGEST CABLE COMPANY BUT WOULD BE A TOUGH NUT FOR AN ACQUIRER TO SWALLOW IT HAS 14 BILLION IN DEBT AND HAS SPUN OFF ITS CROWNJEWEL CABLE AND ENTERTAINMENT OPERATIONS INTO A SEPARATE UNIT THAT IS ALREADY 25OWNED BY REGIONAL TELEPHONE COMPANY U S WEST INC AND 125OWNED BY TWO JAPANESE COMPANIES TOGETHER OF THE TWO NEXTLARGEST PLAYERS CONTINENTAL CABLEVISION IS CLOSELY HELD AND COMCAST IS PUBLIC BUT CONTROLLED BY THE FOUNDING ROBERTS FAMILY BOTH COMPANIES HAVE STRONG OWNERMANAGERS WHO BUILT THEIR COMPANIES FROM THE GROUND UP AND HAVE NO IMMEDIATE DESIRE TO LOSE THAT CONTROL COMCAST PRESIDENT BRIAN ROBERTS HAS BRUSHED ASIDE THE IDEA THAT HIS FAMILY MIGHT SELL OUT WE'RE NOT FOR SALE HE SAID IN A TELEVISION INTERVIEW TUESDAY NIGHT STILL MANY ON WALL STREET SAY COMCAST WOULD BE A PERFECT PARTNER FOR A REGIONAL BELL OPERATING COMPANY THE NATION'S FOURTHLARGEST CABLE OPERATOR WITH 26 MILLION SUBSCRIBERS COMCAST ALSO HAS A 15 STAKE IN QVC NETWORK INC AND A SMALL INVESTMENT IN TURNER BROADCASTING SYSTEM INC AS WELL AS EXTENSIVE CELLULARPHONE OPERATIONS SERVING SEVEN MILLION SUBSCRIBERS ANOTHER CANDIDATE IS CABLEVISION SYSTEMS CORP WITH TWO MILLION SUBSCRIBERS AND AN EVEN BROADER ARRAY OF PROGRAMMING INCLUDING STAKES IN REGIONAL SPORTS NETWORKS AND THE AMERICAN MOVIE CLASSICS AND BRAVO CABLE NETWORKS CABLEVISION WAS SAID TO BE IN TALKS WITH BELL ATLANTIC BEFORE ITS MERGER AGREEMENT WITH TCI AND THE COMPANY IS SAID TO BE STILL TALKING TO CHICAGO BABY BELL AMERITECH CORP AMONG OTHERS CABLEVISION OFFICIALS DECLINED TO COMMENT BEHIND THE MAJOR COMPANIES THE SPOTLIGHT HAS ALSO TURNED TO MIDSIZE CABLE COMPANIES SUCH AS CENTURY COMMUNICATIONS CORP AND TCA CABLE TV INC WHICH AREN'T AS LARGE BUT STILL HAVE EXPERIENCE IN DELIVERING VIDEO ENTERTAINMENT IN THEIR MARKETS THE SMALLER SYSTEMS WILL ALSO BECOME MORE PROMINENT AS TELEPHONE AND CABLE SYSTEMS CONSOLIDATE THEIR HOLDINGS INTO CLUSTERS OR GROUPS OF CONTINGENT CABLE SYSTEMS IN THE SAME REGIONS THE TOP 20 CABLE OPERATORS CONTROL TWOTHIRDS OF THE NATION'S NEARLY 58 MILLION CABLE HOMES AND BELOW THAT TIER ARE DOZENS OF COMPANIES WITH SEVERAL HUNDRED THOUSAND SUBSCRIBERS EACH MANY SUCH OPERATORS FACING HUGE CAPITAL COSTS TO UPGRADE THEIR SYSTEMS MAY READILY SELL OUT TO A TELEPHONE COMPANY AND MANY ARE RUN BY ENTREPENEURS WHO HAVE BEEN EAGER FOR YEARS TO CASH OUT AT TOP DOLLAR FOR EXAMPLE GUSTAVE HAUSER A FORMER OFFICIAL OF TIME WARNER'S CABLE SYSTEMS FORMED HIS OWN SMALL CABLE COMPANY SERVING SUBURBAN WASHINGTON DC SEVERAL YEARS AGO IN FEBRUARY HE SOLD TWO SYSTEMS TO SOUTHWESTERN BELL CORP FOR 650 MILLION A HUGE PROFIT ON HIS ORIGINAL INVESTMENT THAT MARKED THE FIRST OUTRIGHT SALE OF A CABLE OPERATOR TO A TELEPHONE COMPANY THE BELL ATLANTICTCI DEAL AS WELL AS ANY THAT FOLLOW IS EXPECTED TO ALTER THE DYNAMICS OF COMPETITION IN THE CABLE INDUSTRY FOR YEARS CABLE COMPANIES WON EXCLUSIVE FRANCHISES IN THEIR MARKETS AND USUALLY OTHER CABLE OPERATORS STEERED CLEAR OF THOSE MARKETS AS A RESULT LESS THAN 1 OF CABLE COMPANIES FACE ANY COMPETITION IN THEIR LOCAL MARKETS BUT AS CABLE AND TELEPHONE COMPANIES JOIN FORCES THEIR MARKETS WILL OVERLAP THOSE OF OTHER CABLE AND TELEPHONE COMPANIES THERE HAS ALWAYS BEEN A GENTLEMEN'S AGREEMENT IN THE CABLE INDUSTRY SAID JOHN WALLER CHAIRMAN OF WALLER CAPITAL CORP A BROKER OF CABLE TV SYSTEMS THE BELL ATLANTICTCI PACT SHOWS THAT AGREEMENT IS OFF HE ADDS THE POTENTIAL CONFLICTS ARE ALREADY SURFACING IN PHILADELPHIA FOR EXAMPLE COMCAST OPERATES CABLE AND CELLULARPHONE SYSTEMS WHERE BELL ATLANTIC CONTROLS THE LOCAL PHONE SERVICE TCI HAS NEVER BEEN IN THAT MARKET BEFORE AND COMCAST AND TCI HAVE HAD A GOOD WORKING RELATIONSHIP IN THE PAST BOTH ARE INVESTORS IN CABLE HOMESHOPPING CONCERN QVC NETWORK AND ARE BACKING ITS BID FOR ENTERTAINMENT AND PUBLISHING GIANT PARAMOUNT COMMUNICATIONS INC AND TCI AND COMCAST ARE ALSO BOTH INVESTORS IN TURNER BROADCASTING SYSTEM COMCAST IS GOING TO BE LOOKING OVER ITS SHOULDER AT TCI AIDING BELL ATLANTIC SAID MR HATCH IT'S GOING TO BE A MORE UNCOMFORTABLE RELATIONSHIP TIME WARNER WHICH HAS ALWAYS CAST A WARY EYE AT TCI SAYS IT ISN'T WORRIED ABOUT BEING DWARFED BY THE BELL ATLANTICTCI MERGER TIME WARNER OFFICIALS NOTE THAT THEIR COMPANY'S REVENUES ARE ALMOST AS LARGE AND SAY THAT TCI AND BELL ATLANTIC CAN'T MATCH TIME WARNER'S MIX OF CABLE SYSTEMS AND PROGRAMMING FILMED ENTERTAINMENT AND RECORD OPERATIONS MOROEVER TIME WARNER SAYS IT HAS MORE CLUSTERS OF CABLE SYSTEMS EVEN IF ITS TOTAL HOUSEHOLD REACH IS SMALLER AND SOME CABLE OPERATORS MAINTAIN THERE'S NO NEED TO RUSH INTO A DEAL WITH A TELEPHONE COMPANY THERE'S NO PANIC HERE SAYS GLENN JONES FOUNDER AND CHAIRMAN OF JONES INTERCABLE INC ENGLEWOOD COLO WITH 16 MILLION SUBSCRIBERS HE ADDED LOOKING FORWARD YOU NEED A STRATEGIC PARTNER TO ACCESS CAPITAL AND TO ACCESS MARKETS BUT IT DOESN'T HAVE TO BE A PHONE COMPANY AND IT DOESN'T MEAN A LOSS OF CONTROL 9310150144 931015 BUSINESS BRIEF SPARTA SURGICAL CORP EARNINGS ARE UP FIVEFOLD ON 73 INCREASE IN SALES SPARTA SURGICAL CORP SAID NET INCOME IN ITS SECOND QUARTER ENDED AUG 31 INCREASED MORE THAN FIVEFOLD TO 228862 OR TWO CENTS A SHARE THE HAYWARD CALIF MEDICAL PRODUCTS CONCERN CITED STRONG SALES PARTICULARLY IN ITS ELECTROMEDICAL PRODUCT LINE WHICH IT ACQUIRED IN DECEMBER 1992 SALES ROSE 73 TO 2 MILLION FROM 12 MILLION A YEAR AGO IN THE YEAREARLIER PERIOD SPARTA HAD NET OF 41340 OR LESS THAN A CENT A SHARE IN THE FIRST SIX MONTHS PROFIT ROSE 72 TO 250947 OR TWO CENTS A SHARE FROM 145532 OR A CENT A SHARE SALES JUMPED 75 TO 39 MILLION FROM 23 MILLION 9310150143 931015 SMALL STOCK FOCUS MEDIA AND ENTERTAINMENT STOCKS BOOST INDEXES TO RECORD AS RALLY CONTINUES BY CAITLIN MOLLISON SPECIAL TO THE WALL STREET JOURNAL NEW YORK SMALLCOMPANY PRICES SOARED AGAIN AS MARKET PLAYERS SNAPPED UP MEDIA AND ENTERTAINMENT ISSUES AND BONDS ZOOMED HIGHER COMMUNICATIONS ISSUES ROSE IN A FOLLOWTHROUGH FROM WEDNESDAY'S JUMP ON NEWS THAT BELL ATLANTIC TELECOMMUNICATIONS AND LIBERTY MEDIA PLAN TO MERGE MARKET OBSERVERS SAID INVESTORS EXPECT TO SEE MORE MEDIA AND COMMUNICATIONS TAKEOVERS DOWN THE ROAD AND THIS IS CONTINUING TO BOOST SMALLER STOCKS THE NASDAQ UTILITY INDEX FORGED 4149 MORE POINTS OR 363 HIGHER TO FINISH AT 118377 ANOTHER RECORD THE BAROMETER COMPRISES MANY COMMUNICATIONS STOCKS TCA CABLE TV TYLER TEXAS GAINED 1 7/8 TO 29 WESTWOOD ONE CULVER CITY CALIF SOARED 1 TO 6 11/16 AND STRATACOM SAN JOSE CALIF JUMPED 2 TO 18 THE MAJOR INDEXES POWERED TO NEW HIGHS AGAIN IN A RALLY THAT HAS BEEN UNSHAKEABLE IN THE PAST SEVERAL WEEKS THE RUSSELL 2000 INDEX A MEASURE OF THE PERFORMANCE OF SMALLCAPITALIZATION STOCKS TRADED OVER THE COUNTER AND ON THE MAJOR EXCHANGES SKIPPED UP 114 POINTS OR 044 TO 25903 ON NASDAQ THE COMPOSITE INDEX JUMPED 644 POINTS OR 083 TO END AT 78541 BOTH INDEXES HAVE HIT NEW HIGHS EVERY DAY THIS WEEK BULLISH INFLATION NEWS GAVE BONDS A LIFT THE LONG BOND SHOT MORE THAN 3/4 POINT HIGHER WITH ITS YIELD DROPPING TO 585 THE GOVERNMENT SAID PRODUCER PRICES ROSE MODESTLY IN SEPTEMBER OTHER ECONOMIC DATA SHOW THAT RETAIL SALES EDGED UP 01 LAST MONTH SEPTEMBER CONSUMER PRICES TO BE RELEASED TODAY WILL BE CLOSELY WATCHED TRADERS SAID ALTHOUGH INFLATION TROU ARE THOUGHT TO BE UNDER CONTROL THIS IS A HUGE FEEDING FRENZY SAID ARNOLD OWEN MANAGING DIRECTOR OF TRADING AT SOUNDVIEW FINANCIAL CORP IT'S KIND OF SCARY I SEE ALMOST PANIC BUYING IN CERTAIN ISSUES BUT MARY FARRELL A PAINEWEBBER MARKET STRATEGIST SAID THE NONSTOP CLIMB AMONG SMALLER STOCKS ISN'T NECESSARILY A NEGATIVE THESE ISSUES STILL OFFER A VERY GOOD VALUE FOR THEIR EARNINGS GROWTH SHE SAID I DON'T THINK THIS RAPID SURGE INDICATES ANY STRUCTURAL WEAKNESS SHE ADDED THERE HAS BEEN A ROTATION IN THE MARKET'S LEADERSHIP SINCE AUGUST TO GROWTH ISSUES FROM VALUE STOCKS WHAT WE'RE SEEING IS A VERY RATIONAL RESPONSE TO LOW INTEREST RATES MS FARRELL SAID ALTHOUGH SHE EXPECTS A CORRECTION AT SOME POINT SHE ANTICIPATES SHORT WAVES OF PULLBACKS AS OPPOSED TO A BROADBASED PLUNGE NASDAQ ADVANCERS BEAT OUT DECLINING ISSUES 1595 TO 1348 ON NASDAQ NATIONAL MARKET VOLUME OF 326953000 SHARES DOWN FROM WEDNESDAY'S RECORD LEVEL OF 364637900 SHARES AMONG NEW ISSUES LODGENET ENTERTAINMENT CLOSED AT 16 3/4 UP FROM ITS OFFERING PRICE WEDNESDAY OF 1350 A SHARE THE SIOUX FALL SD PROVIDER OF PAYPERVIEW TELEVISIONENTERTAINMENT SERVICES PLANS TO USE PROCEEDS TO REDEEM PREFERRED STOCK AND REDUCE BANK DEBT ON THE EARNINGS FRONT NEW YORK STOCK EXCHANGETRADED ELCOR SLIPPED 1 1/2 TO 22 1/8 THE DALLAS ROOFING PRODUCTS CONCERN POSTED FISCALFIRST QUARTER OPERATING NET INCOME OF 46 CENTS A SHARE DOWN FROM 52 CENTS A YEAR EARLIER GENLYTE GROUP ADDED 3/4 TO 3 5/8 AFTER REPORTING IMPROVED THIRDQUARTER NET OF 7 CENTS A SHARE UP FROM 4 CENTS A YEAR EARLIER THE SECAUCUS NJ COMPANY DESIGNS MAKES AND SELLS LIGHTING FIXTURES AND CONTROLS DETECTION SYSTEMS FAIRPORT NY ROSE 7/8 TO 7 FOLLOWING THE RELEASE OF FISCALSECONDQUARTER EARNINGS OF 15 CENTS A SHARE FROM 8 CENTS A YEAR EARLIER IN OTHER NEWS ARITECH A MAKER OF ELECTRONIC SECURITY EQUIPMENT ADDED 1 1/8 TO 6 1/8 BERWIND INDUSTRIES SAID ITS SENTROL LIFESAFETY CORP SUBSIDIARY EXPECTED ITS 625 TENDER OFFER FOR ALL OF ARITECH'S COMMON SHARES OUTSTANDING TO CLOSE AS SCHEDULED AT MIDNIGHT YESTERDAY ISIS PHARMACEUTICALS ROSE 1 1/4 TO 8 1/4 THE CARLSBAD CALIF DRUG MAKER SAID IT AND A GROUP OF SCIENTISTS FROM THE UNIVERSITY OF COPENHAGEN REPORTED THIS WEEK IN THE BRITISH PUBLICATION NATURE THAT THEY HAVE REDESIGNED THE MOLECULAR INFRASTRUCTURE OF DNA CREATING A NEW BACKBONE CHEMISTRY FOR THE DESIGN OF A NEW GENERATION OF DRUGS VERTEX PHARMACEUTICALS CAMBRIDGE MASS EDGED UP 3 3/8 TO 18 3/4 ROBERTSON STEPHENS & CO INITIATED COVERAGE OF THE COMPANY'S SHARES WITH A STRONG BUY RATING ANALYST MICHAEL WALSH SAID HE THINKS THAT AS VERTEX IMPLEMENTS ITS AGGRESSIVE CLINICAL PROGRAM OVER THE NEXT FEW QUARTERS ITS STOCK PRICE COULD INCREASE BY 20 TO 30 WALSH ADDED THAT PHASE I/II DATA FOR VERTEX'S SICKLECELLDISEASE PRODUCT COULD MOVE THE STOCK UP 50 TO 100 FROM CURRENT LEVELS WITHIN 12 MONTHS 9310150142 931015 FINANCING BUSINESS CHILES OFFSHORE CORP CHILES OFFSHORE CORP SAID IN HOUSTON THAT IT'S OFFERING 35 MILLION SHARES OF 150 CONVERTIBLE PREFERRED STOCK AT 25 APIECE THE COMPANY SAID IT EXPECTS TO COMPLETE THE OFFERING BY NEXT THURSDAY THE EXPECTED PROCEEDS ABOUT 84 MILLION WILL BE USED TO PREPAY CERTAIN SECURED DEBT TO FINANCE TOGETHER WITH CASH FROM OPERATIONS CERTAIN PLANNED REACTIVATIONS AND UPGRADES OF DRILLING RIGS AND FOR WORKING CAPITAL AND GENERAL CORPORATE PURPOSES CHILES IS AN OIL AND NATURALGAS DRILLING CONCERN 9310150141 931015 MARKETING & MEDIA PBS STATION IN CHICAGO WILL LAUNCH AN UPSCALE HOMESHOPPING SERVICE BY PATRICK M REILLY STAFF REPORTER OF THE WALL STREET JOURNAL TV HOME SHOPPING IS GOING HIGHBROW BEGINNING SATURDAY WTTW THE MAJOR PUBLIC BROADCASTING SERVICE STATION IN CHICAGO WILL BECOME THE FIRST PBS STATION TO OFFER A HOMESHOPPING SERVICE PEDDLING MERCHANDISE THAT MIGHT BE FOUND IN A MUSEUM GIFT SHOP OR A FANCY IMPORT STORE THE SERVICE WILL BE TESTED TWO WEEKS OVER 45 HOURS BUT IF SUCCESSFUL WTTW MAY LOOK TO EXPAND THE SERVICE TO INCLUDE GOODS FROM NATIONAL CULTURAL INSTITUTIONS OR PRODUCE IT AS A FULLBLOWN SHOPPING SERVICE FOR CABLE OR BROADCAST SYNDICATION LIKE MOST OF ITS PROGRAMMING FARE WTTW'S MERCHANDISE WILL COME FROM CHICAGO'S NONPROFIT CULTURAL INSTITUTIONS WHICH IN TURN WILL RECEIVE MOST OF THE REVENUE IT WILL OFFER GOODS FROM THE ART INSTITUTE OF CHICAGO THE CHICAGO SYMPHONY ORCHESTRA THE FIELD MUSEUM AND LINCOLN PARK ZOOLOGICAL SOCIETY BETWEEN EDUCATIONAL MESSAGES FROM THE INSTITUTIONS WTTW WILL SELL ON ITS CHICAGO HOLIDAY GIFT EXCHANGE SUCH GOODS AS AN AFRICAN MASK 110 BRONZE REPRODUCTIONS OF THE FAMOUS ART INSTITUTE LIONS 1800 A STONE VERSION FOR 100 OR A RAINFOREST HERBANDFOOD GIFT BASKET 54 THOUGH TONIER THAN ITS COMMERCIAL COMPETITORS ON CABLE TV THE PLAN IS BEING BLASTED BY WATCHDOG GROUPS I GUESS IT'S PERMISSIBLE BUT IT'S AN ABUSE OF THE PUBLIC TRUST SAID GIGI B SOHN OF MEDIA ACCESS PROJECT A WASHINGTON DC PUBLICINTEREST LAW FIRM WHAT THEY ARE SELLING IS IRRELEVANT THEY ARE GOING TO USE PART OF THE PUBLIC AIRWAVES WHICH WERE SET ASIDE FOR PUBLIC EDUCATION FOR COMMERCIAL SALES THIS IS THE WORST ABUSE OF THAT TRUST BUT WTTW ARGUES THAT THE SHOPPING PROGRAM WON'T SUPPLANT CHILDREN'S PROGRAMS OR WEEKNIGHT PRIMETIME SHOWS WE ARE WILLING TO LET THE VIEWING PUBLIC JUDGE FOR ITSELF IF THIS IS CROSSING THE LINE SAID BRUCE MARCUS A WTTW SENIOR VICE PRESIDENT WE AREN'T JUST SELLING MERCHANDISE WE'RE OFFERING LOTS OF INFORMATION ABOUT THE CULTURAL RICHES OF CHICAGO WTTW WILL TAKE A SLICE OF THE SALES TO COVER THE COST OF PRODUCING THE SHOPPING SERVICE WTTW IS HARDLY A THREAT TO TV HOME SHOPPING'S TWO DOMINANT PLAYERS HOME SHOPPING NETWORK INC AND QVC NETWORK INC HOME SHOPPING REACHES 27 MILLION AMERICAN HOMES THROUGH CABLE QVC REACHES ABOUT 47 MILLION HOMES THROUGH CABLE AND SATELLITE BUT WTTW HAS THE HIGHEST RATINGS OF ANY PBS STATION IS CARRIED ON ABOUT 220 CABLE SYSTEMS AND CLAIMS AN AUDIENCE OF AS MANY AS SIX MILLION VIEWERS A PBS SPOKESMAN IN WASHINGTON SAID THE WTTW HOMESHOPPING SERVICE WOULD BE CLOSELY WATCHED BY OTHER PBS STATIONS BUT THAT THE CHICAGO STATION CONTROLS ITS OWN LOCAL PROGRAMMING 9310150140 931015 PEOPLES TELEPHONE TO BUY ASSETS MIAMI PEOPLES TELEPHONE CO SAID IT AGREED TO BUY SUBSTANTIALLY ALL OF THE ASSETS OF ASCOM COMMUNICATIONS INC FOR 40 MILLION IN CASH STOCK AND NOTES ASCOM BASED IN BOCA RATON FLA OWNS AND OPERATES ABOUT 11500 PUBLIC PAY TELEPHONES IN 16 STATES PEOPLES OWNS AND OPERATES MORE THAN 30000 PUBLIC PAY PHONES CORRECTIONALFACILITY TELEPHONES AND CELLULAR PHONES IN 40 STATES 9310150139 931015 OHIO POWER TO REDEEM STOCK COLUMBUS OHIO OHIO POWER CO SAID ON NOV 14 IT WILL REDEEM ALL OF THE SHARES OUTSTANDING OF ITS 776 CUMULATIVE PREFERRED STOCK THE COMPANY AN ELECTRIC UTILITY UNIT OF AMERICAN ELECTRIC POWER CO SAID THE STOCK WILL BE REDEEMED AT 10222 A SHARE PLUS AN AMOUNT BASED ON THE STOCK'S ANNUAL DIVIDEND RATE ACCRUED FROM SEPT 1 THROUGH THE REDEMPTION DATE FIRST CHICAGO TRUST CO NEW YORK IS THE REDEMPTION AGENT THE COMPANY SAID 9310150138 931015 FANUC TO PROVIDE SYSTEM FOR GM DETROIT GENERAL MOTORS CORP SAID IT SELECTED FANUC ROBOTICS NORTH AMERICA TO PROVIDE AN AUTOMATED PAINT SYSTEM FOR ITS LORDSTOWN OHIO ASSEMBLY PLANT FANUC ROBOTICS IS A UNIT OF JAPAN'S FANUC LTD GM SAID THE FOURROBOT PAINT SYSTEM WILL APPLY AN ANTICHIP COATING AND TOPCOAT PAINT TO 1994 CHEVROLET CAVALIER AND PONTIAC SUNBIRD MODELS 9310150137 931015 GUARDED OPTIMISM SOME PESSIMISM SEEN IN BUSINESS SURVEY NEW YORK FOR THE SECOND STRAIGHT MONTH SMALL MANUFACTURERS EXPRESSED GUARDED OPTIMISM ABOUT THE BUSINESS OUTLOOK BUT FOR THE FIFTH CONSECUTIVE MONTH CONSTRUCTION EXECUTIVES VOICED PESSIMISM ABOUT PROSPECTS FOR NEW ORDERS ACCORDING TO DUN & BRADSTREET CORP'S LATEST SURVEYS MANUFACTURERS ARE OPTIMISTIC THAT THE CURRENT PACE OF SLOW GROWTH IS SUSTAINABLE SAID DOUGLAS P HANDLER D&B'S MANAGER OF ECONOMETRIC ANALYSIS THIS IS EVIDENCE OF A VERY CAUTIOUS ATTITUDE AMONG MOST MANUFACTURERS IN THE SURVEY OF 1000 MANUFACTURERS D&B'S INDUSTRIAL SENTIMENT INDEX FOR SEPTEMBER WHICH MEASURES EXPECTATIONS FOR THE COMING THREE MONTHS HELD STEADY AT AUGUST'S LEVEL OF 18 TWO POINTS HIGHER THAN THE YEARAGO FIGURE EXPECTATIONS FOR PRODUCTION SLIPPED ONE POINT TO 37 AFTER A TWOPOINT GAIN IN AUGUST BUT EXPECTATIONS FOR EMPLOYMENT ROSE TO 18 AN INCREASE OF FIVE POINTS FROM AUGUST AND FROM SEPTEMBER 1992 THE OUTLOOK FOR MANUFACTURING EMPLOYMENT HAS FINALLY PICKED UP MR HANDLER SAID THIS IS ONE OF THE MOST ENCOURAGING SIGNS IN THE CURRENT SURVEY THE INDEX REPRESENTS THE PERCENTAGE OF RESPONDENTS EXPECTING INCREASES IN INDICATORS SUCH AS PRODUCTION MINUS THE PERCENTAGE EXPECTING DECREASES CONSTRUCTION FIRMS REPORTED A BLEAK OUTLOOK FOR NEW ORDERS FOR THE FIFTH CONSECUTIVE MONTH THE NEW ORDER INDEX DROPPED THREE POINTS TO 15 FOLLOWING A 14POINT DROP IN AUGUST DESPITE SOLID INCREASES IN BUSINESS CONDITIONS OVER THE SUMMER MOST CONSTRUCTION FIRMS ARE WAITING FOR THE OTHER SHOE TO DROP IN THE FORM OF HIGHER TAXES HIGHER LABOR COSTS OR RISING INTEREST RATES MR HANDLER SAID THE OUTLOOK FOR EMPLOYMENT IN CONSTRUCTION FELL SHARPLY TO 1 FROM 13 IN AUGUST AND THE PRICES INDEX SLID TO 8 FROM 11 WHICH IS ERODING OPTIMISM AND IMPEDING ANY EMPLOYMENT GROWTH IN THE SECTOR MR HANDLER SAID 9310150136 931015 INTERNATIONAL GREECE'S PAPANDREOU COPIES PREDECESSOR GIVES KIN TOP JOBS BY JENNY PARIS SPECIAL TO THE WALL STREET JOURNAL ATHENS A DAY AFTER ANDREAS PAPANDREOU ASSUMED OFFICE GREEKS REALIZED THAT IT'S ANOTHER FAMILY AND NOT JUST ANOTHER GOVERNMENT THAT'S GOING TO RULE THE COUNTRY SEEMING TO HAVE FORGOTTEN THAT NEPOTISM WAS ONE OF THE CAUSES FOR THE ELECTION DEFEAT OF HIS CONSERVATIVE PREDECESSOR CONSTANTINE MITSOTAKIS THE NEW SOCIALIST PRIME MINISTER STIRRED OUTRAGE BY APPOINTING HIS WIFE AND OTHER MEMBERS OF HIS FAMILY TO SENIOR GOVERNMENT POSTS HIS 38YEAROLD WIFE DIMITRA PAPANDREOU A FORMER FLIGHT ATTENDANT WITH NO PREVIOUS POLITICAL EXPERIENCE WAS APPOINTED DIRECTOR OF THE PRIME MINISTER'S POLITICAL OFFICE MAKING HER MR PAPANDREOU'S TOP ADVISER ON OVERALL GOVERNMENT POLICY MR PAPANDREOU ALSO NAMED HIS SON GEORGE DEPUTY FOREIGN MINISTER HIS WIFE'S COUSIN GEORGE LIANIS DEPUTY CULTURE MINISTER AND HIS PERSONAL PHYSICIAN CARDIOLOGY PROFESSOR DIMITRIS KREMASTINOS HEALTH MINISTER BUT IT WAS THE APPOINTMENT OF HIS WIFE THAT RAISED THE MOST HACKLES CRITICS GRIPED THAT IT WILL BE MRS PAPANDREOU WHO WILL BE RUNNING THE COUNTRY RATHER THAN HER FRAIL 74YEAROLD HUSBAND MR PAPANDREOU MARRIED HER IN THE SUMMER OF 1989 AFTER A WIDELY REPORTED TWOYEAR EXTRAMARITAL AFFAIR THAT HAD BEEN IN PART RESPONSIBLE FOR THE SOCIALIST GOVERNMENT'S FALL EARLIER THAT YEAR SHE PUBLICLY APPEARED AT HIS SIDE WHILE HE WAS BEING TREATED IN LONDON AFTER OPENHEART SURGERY IN THE AUTUMN OF 1988 ALTHOUGH HE HADN'T YET DIVORCED HIS AMERICAN WIFE MARGARET SHE ALSO ESCORTED MR PAPANDREOU AT A EUROPEAN COMMUNITY SUMMIT IN DECEMBER 1988 DURING GREECE'S EC PRESIDENCY CONSERVATIVE DAILY NEWSPAPERS WERE QUICK TO BLAST MRS PAPANDREOU DIMITRA RULES GREECE AND WE DON'T NEED ANOTHER EVITA PERON WERE TWO OF THE HEADLINES THE RIGHTIST DAILY ELEFTHEROS TYPOS PREDICTED THAT MRS PAPANDREOU WOULD DEVELOP INTO THE GOVERNMENT'S NO 1 PROBLEM GOVERNMENT SPOKESMAN EVANGELOS VENIZELOS COUNTERED THAT MRS PAPANDREOU WHO HAS REMAINED SILENT AMID THE FRESH ATTACKS AGAINST HER WON'T BE PAID FOR HER SERVICES MRS PAPANDREOU COULDN'T BE REACHED FOR COMMENT 9310150135 931015 OCOM CORP MERGER NEW YORK OCOM CORP SAID IT COMPLETED ITS MERGER WITH A UNIT OF INTERNATIONAL CABLETEL INC OCOM SAID EACH OF ITS SHARES HAS BEEN EXCHANGED FOR A SHARE OF CABLETEL ON A ONEFORONE BASIS OCOM SAID ITS COMMON SHARES ARE NOW TRADING ON THE NASDAQ AS THE COMMON STOCK OF CABLETEL UNDER THE SYMBOL ICTL 9310150134 931015 JAPANESE SHIPBUILDING CONTRACTS TOKYO JAPANESE SHIPBUILDERS SIGNED EXPORT CONTRACTS TO CONSTRUCT 12 VESSELS IN SEPTEMBER WITH A COMBINED TONNAGE OF 347700 METRIC TONS UP 70 FROM THE YEAREARLIER MONTH THE JAPAN SHIP EXPORTERS' ASSOCIATION SAID FOR THE HALFYEAR PERIOD THROUGH SEPTEMBER SHIPBUILDERS SIGNED CONTRACTS TO EXPORT 101 VESSELS WITH A COMBINED TONNAGE OF 39 MILLION METRIC TONS UP 194 FROM THE YEAREARLIER PERIOD A METRIC TON IS 22046 POUNDS 9310150133 931015 LUFTHANSA SETS PAY BOOSTS BONN DEUTSCHE LUFTHANSA AG SAID IT HAS SIGNED AN AGREEMENT WITH ITS UNIONS CALLING FOR AN OVERALL WAGE BOOST OF ABOUT 25 FOR NEXT YEAR 9310150132 931015 GENERAL MILLS ISSUES ALERT TO PUBLIC OVER KIX CEREAL MINNEAPOLIS GENERAL MILLS INC ISSUED A CONSUMERSAFETY ALERT AFTER LEARNING THAT BITS OF ALMOND FROM ANOTHER CEREAL GOT INTO SOME BOXES OF ITS KIX CEREAL DURING MANUFACTURING IN JULY PEOPLE ALLERGIC TO ALMONDS CAN SUFFER SERIOUS CONSEQUENCES FROM INGESTING THE NUTS BUT A SPOKESMAN SAID GENERAL MILLS KNOWS OF NO HEALTH PROBLEMS RELATED TO THE MANUFACTURING ERROR ABOUT TWO DAYS' PRODUCTION OF THE CEREAL MADE IN A SOUTH CHICAGO PLANT CONTAIN SMALL AMOUNTS OF GROUND ALMOND FROM HONEY NUT CHEERIOS THE SPOKESMAN SAID GENERAL MILLS LEARNED OF THE PROBLEM AFTER THE MOTHER OF A CHILD ALLERGIC TO ALMONDS CALLED NINE AND 13OUNCE BOXES OF KIX WITH A BETTER IF USED BY CODE OF 22 MAR 94 X212 OR 23 MAR 94 X212 OR 23 MAR 94 X210 PRINTED ON THE TOP ARE INVOLVED THE COMPANY SAID GENERAL MILLS TRACED THE SHIPMENTS AND RETRIEVED UNSOLD BOXES FROM SUPERMARKETS AND WAREHOUSES THE SPOKESMAN SAID 9310150131 931015 DEAL OF THE CENTURY BY ALFRED C SIKES IT HAS LONG BEEN SAID THAT A TELECOMMUNICATIONS REVOLUTION IS AT HAND WITH THE MERGER OF BELL ATLANTIC CORP AND TELECOMMUNICATIONS INC IT HAS HAPPENED ON TUESDAY ONE OF THE LARGEST US LOCAL TELEPHONE COMPANIES AND THE BIGGEST US CABLE COMPANY ANNOUNCED THEIR INTENTION TO JOIN FORCES INSTANTLY TRANSFORMING THE TELECOMMUNICATIONS INDUSTRY IN AMERICA AND ONE CAN ASSUME SERVING AS A CATALYST TO SIMILAR MEGAMERGERS IN THE FUTURE THAT IS IF THE MERGER GOES FORWARD AS PLANNED THE BELL ATLANTICTCI DEAL WILL SURELY BE ONE OF THE MOST TANTALIZING INVITATIONS TO COME WASHINGTON'S WAY IN THE COMMERCIAL HISTORY OF THE US NOTHING STIRS CONGRESSIONAL AND REGULATORY PASSIONS MORE THAN THE ELECTRONIC FOURTH ESTATE THE CONCERN WILL BE OF COURSE THAT SUCH A MERGER IS ANTICOMPETITIVE BOTH THE JUSTICE DEPARTMENT AND THE FEDERAL COMMUNICATIONS COMMISSION WILL REVIEW THE DEAL I FOR ONE SPEAKING AS A FORMER FCC CHAIRMAN THINK THE MERGER'S PROMISES OUTWEIGH ITS RISKS AND I THINK THE RISKS ARE MANAGEABLE THE MERGER PARTNERS CLAIM THE DEAL IS IN FACT PROCOMPETITIVE AND THIS SEEMS RIGHT THANKS IN PART TO RAPID TECHNOLOGICAL PROGRESS THE TWIN MONOPOLIES OF CABLE TV AND TELEPHONE SERVICE ARE BECOMING MORE AND MORE VULNERABLE TO COMPETITION WITH THIS MERGER AND OTHERS LIKE IT THE REAL COMPETITION WILL BEGIN TO IMAGINE THE FORM SUCH COMPETITION WILL TAKE ONE NEED ONLY LOOK TO BRITAIN WHERE INCREASING NUMBERS OF PEOPLE CAN PLACE THEIR TELEPHONE CALLS THROUGH EITHER BRITISH TELECOMMUNICATIONS THE EQUIVALENT OF THE PREBREAKUP AT&T OR A CABLE TV PROVIDER ODDLY ENOUGH MOST OF THE CABLE TV/TELEPHONE COMPANIES IN BRITAIN ARE BASED IN THE US THE FACT IS THAT FIBER OPTICS DIGITAL COMPRESSION TECHNOLOGY COMPUTERS CELLULAR TELEPHONY AND INGENIOUS SOFTWARE HAVE BROKEN THE TELECOMMUNICATIONS MONOPOLIES THESE DAYS ONEDIMENSIONAL COMPANIES CAN BECOME MULTIDIMENSIONAL BY SIMPLY UPGRADING THEIR PLANT AND EQUIPMENT ONLY LEGAL RESTRICTIONS KNOWN AS CROSSOWNERSHIP PROHIBITIONS HAVE KEPT THE US FROM LEADING BRITAIN INTO THE NEW ERA OF LOCAL TELEPHONE AND CABLE COMPETITION LUCKILY THE LEGAL RESTRICTIONS IN THE US ARE WEAKENING LAST YEAR THE FCC AUTHORIZED PHONE COMPANIES TO PROVIDE A VIDEO DIALTONE TO MAKE IT EASIER FOR THEM TO COMPETE IN VIDEO MARKETS AND THIS SUMMER A FEDERAL DISTRICT COURT JUDGE IN ALEXANDRIA VA RULED ON FIRST AMENDMENT GROUNDS THAT A LAW PROHIBITING TELEPHONE AND CABLE CROSSOWNERSHIP IN THE SAME MARKET WAS UNCONSTITUTIONAL THE LAWSUIT'S PLAINTIFF WAS NOT INCIDENTALLY BELL ATLANTIC AS THESE LEGAL CHANGES WERE TAKING PLACE THE CABLE AND TELEPHONE INDUSTRIES WERE EXPLORING ALLIANCES FOR OBVIOUS REASONS TELEPHONE COMPANIES HAVE CAPITAL AND ENGINEERING SKIEN CABLE INDUSTRY DESPERATELY NEEDS CABLE COMPANIES IN TURN HAVE THE WIDE TRANSMISSION PATHS VIA COAXIAL CABLE AND THE VIDEO ASSETS THAT TELEPHONE COMPANIES DESPERATELY WANT TO HAVE THE FIRST SIGN OF THINGS TO COME WAS THE ALLIANCE BETWEEN U S WEST THE DENVERBASED TELEPHONE COMPANY AND THE CABLE AND PROGRAMMING UNIT OF TIME WARNER INC THE BELL ATLANTICTCI MERGER CONFIRMS THE LOGIC OF THAT EARLIER DEAL AND WILL NO DOUBT SET OFF A FRENZY OF DEALMAKING BUSINESS LOGIC ASIDE HOWEVER THE PIVOTAL QUESTION IS WHETHER THE BELL ATLANTICTCI TRANSACTION IS IN THE PUBLIC INTEREST WILL THIS COMBINATION OF BEHEMOTHS HAVE THE POTENTIAL TO SMOTHER COMPETITION THUS DENYING THE BENEFITS CONSUMERS WANT AND MONOPOLIZING TELECOMMUNICATIONS ON BEHALF OF ITS OWN PROGRAMS AND SERVICES UNLESS THE GOVERNMENT FALLS ASLEEP THE ANSWER IS NO THE GOVERNMENT SHOULD NOT LET THESE COMPANIES COMBINE FACILITIES IN MARKETS THEY BOTH SERVE IT SHOULD HOWEVER ENCOURAGE THEM TO CONFRONT THE MONOPOLIES IN EACH OTHER'S INDUSTRIES TCI'S ASSETS FOR EXAMPLE SHOULD HELP BELL ATLANTIC IN ITS EFFORT TO COMPETE AGAINST CABLE PROVIDERS IN PHILADELPHIA AND BELL ATLANTIC'S ASSETS SHOULD HELP ITS TCI DIVISION TAKE ON U S WEST'S TELEPHONE MONOPOLY IN DENVER SUCH COMPETITION WILL BE JOINED BY COMPETITION IN OTHER FORMS OF COURSE DIRECT SATELLITETOHOME TV SERVICE WILL BE LAUNCHED IN DECEMBER AND OFFERED TO CONSUMERS IN THE SPRING TELEVISION BROADCASTERS WILL SOON DEPLOY A DIGITAL NETWORK CELLULAR TELEPHONE COMPANIES ARE POISED TO PROVIDE AN ALTERNATIVE TO FIXED PHONE LINK SERVICES AND AT&T AND MCI WILL UNDOUBTEDLY ALSO BE IN THE MIDST OF THESE NEW TECHNOLOGICAL OFFERINGS ALL OF THEM WILL SPEED BY YEARS THE ADVANCED INTERACTIVE NETWORKS THAT MANY FORESEE AS THE ENDPOINT OF THE TELECOM REVOLUTION THE VIDEO PHONE CALL THAT SOME PEOPLE TALK ABOUT NOW SEEMS IN SIGHT EVEN SO MUCH CAN BE DONE TO HELP THIS DYNAMIC PROCESS ALONG THE BELL ATLANTICTCI MERGER SHOULD PUSH WASHINGTON'S LEADERSHIP REGULATORY AND CONGRESSIONAL TO CHANGE BADLY OUTDATED LAWS STATUTORY CROSSOWNERSHIP PROHIBITIONS SHOULD BE REPEALED SUCH A REPEAL IS ESSENTIAL IF MULTIDIMENSIONAL SERVICESNOW TECHNOLOGICALLY POSSIBLE ARE TO IGNITE INVESTMENT IN ADVANCED NETWORKS WITH THE REPEALING LANGUAGE CONGRESS SHOULD SEND THE FCC A SIMPLE MESSAGE DEFINING ITS TWO MISSIONS FIRST THE FCC SHOULD ENSURE THAT COMMUNICATIONS ACCESS TO PEOPLE'S HOMES AND BUSINESSES IS NOT MONOPOLIZED ACCESS RULES ARE A MUST IF SUCH A MONOPOLY THREATENS SECOND WHEREVER THERE IS A TELEPHONE MONOPOLY THE FCC SHOULD BAR IT FROM USING THE CAPTIVE RATEPAYER TO FUND COMPETITIVE SERVICES FINALLY CONGRESS SHOULD REVISIT MUNICIPAL REGULATION OF THE CABLE INDUSTRY IF CABLE COMPANIES ARE TO DEVELOP STANDARDIZED TELEPHONE SERVICES AND MOUNT AN EFFECTIVE CAMPAIGN AGAINST THEIR COMPETITORS THEY CANNOT BE REGULATED INCONSISTENTLY BY MORE THAN 30000 LOCAL GOVERNMENTS CLEARLY TODAY'S COMMUNICATIONS POTENTIAL IS ENORMOUS WHAT THE BELL ATLANTICTCI MERGER OFFERS US IS A DRAMATIC VISION OF THE DAY WHEN WE WILL HAVE A CHOICE BETWEEN ADVANCED INTERACTIVEVIDEO NETWORK PROVIDERS ONE CAN ONLY HOPE THAT WASHINGTON WILL NOT STAND IN THE WAY MR SIKES IS HEAD OF HEARST CORP'S NEW MEDIA AND TECHNOLOGY DIVISION IN NEW YORK 9310150130 931015 MERCER SHIN HO PLAN VENTURE VANCOUVER BRITISH COLUMBIA MERCER INTERNATIONAL INC SAID A CANADIAN UNIT OF SOUTH KOREA'S CLOSELY HELD SHIN HO GROUP AGREED IN PRINCIPLE TO BECOME A JOINTVENTURE PARTNER IN DRESDEN PAPER AG MERCER AN ENVIRONMENTAL AND FINANCIALSERVICES CONCERN LAST MONTH AGREED TO ACQUIRE DRESDEN PAPER A STATEOWNED PAPERRECYCLING COMPANY IN EASTERN GERMANY IT SAID SHIN HO WILL HAVE A 70 STAKE IN DRESDEN PAPER AND MERCER WILL HAVE A 30 STAKE MERCER SAID SHIN HO WILL PROVIDE OPERATING AND MARKETING EXPERTISE BUT DIDN'T SAY WHETHER THE KOREAN CONCERN WOULD CONTRIBUTE CAPITAL TO THE VENTURE MERCER INTERNATIONAL INC WOULD OWN 70 OF DRESDEN PAPER AG AND A UNIT OF SOUTH KOREA'S SHIN HO GROUP WOULD OWN 30 IN A PROPOSED JOINT VENTURE AN ITEM FRIDAY INCORRECTLY SAID SHIN HO WOULD HAVE A 70 STAKE AND MERCER WOULD HAVE A 30 STAKE 9310150129 931015 WARNACO RENEGOTIATES CREDIT NEW YORK WARNACO GROUP INC SAID IT NEGOTIATED A 500 MILLION CREDIT FACILITY REPLACING ONE THAT HAD A HIGHER INTEREST RATE THE NEW FACILITY WILL SAVE THE COMPANY ABOUT 8 MILLION A YEAR OR 40 CENTS A SHARE IN INTEREST EXPENSE THE CLOTHING MANUFACTURER SAID THE NEW LOAN'S INTEREST RATE IS LIBOR OR LONDON INTERBANK OFFERED RATE PLUS 125 COMPARED WITH LIBOR PLUS 275 FOR THE PRIOR FACILITY LIBOR IS THE AVERAGE OF INTERBANK OFFERED RATES FOR DOLLAR DEPOSITS IN THE LONDON MARKET BASED ON QUOTATIONS AT FIVE MAJOR BANKS WARNACO'S NEW FACILITY ALSO INCLUDES AGREEMENTS THAT FURTHER CUT THE INTEREST RATE TO LIBOR PLUS 075 AS THE COMPANY IMPROVES ITS CREDIT RATING 9310150128 931015 MARKETING & MEDIA HOUGHTON MIFFLIN'S NET INCOME INCREASED 22 IN 3RD QUARTER BOSTON HOUGHTON MIFFLIN CO CITING ITS STREAMLINING EFFORTS IN THE SECOND QUARTER REPORTED A 22 INCREASE IN THIRDQUARTER NET INCOME ON A 5 SALES RISE SEPARATELY THE TEXTBOOK PUBLISHER SAID IT PLANS TO SPIN OFF ITS SOFTWARE DIVISION INTO A NEWLY FORMED COMPANY OF WHICH HOUGHTON WILL HOLD A SIGNIFICANT MINORITY INTEREST FOR THE THIRD QUARTER THE TEXTBOOK PUBLISHER REPORTED NET INCOME OF 415 MILLION OR 3 A SHARE COMPARED WITH 34 MILLION OR 246 A SHARE IN THE YEAREARLIER QUARTER SALES FOR THE QUARTER WERE 2085 MILLION COMPARED WITH 1988 MILLION IN THE YEAREARLIER PERIOD WHICH INCLUDED 55 MILLION FROM OPERATIONS THAT WERE LATER SOLD IN THE 1992 FOURTH QUARTER HOUGHTON MIFFLIN ATTRIBUTED ITS RESULTS TO INCREASED SALES AND REDUCED COSTS AFTER REFINANCING NOTES AND CLOSING A WAREHOUSE EARLIER THIS YEAR AND CUTTING ITS WORK FORCE 21 SINCE 1991 FOR THE NINE MONTHS HOUGHTON HAD NET INCOME OF 301 MILLION OR 218 A SHARE AFTER A 1 MILLION CHARGE FOR EARLY EXTINGUISHMENT OF DEBT IN THE YEAREARLIER PERIOD HOUGHTON HAD NET INCOME OF 17 MILLION OR 121 A SHARE AFTER A 147 MILLION CHARGE FOR ACCOUNTING CHANGES NADER F DAREHSHORI CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID HOUGHTON REMAINS ON TRACK TO ACHIEVE FULLYEAR 1993 EARNINGS OF AT LEAST 220 A SHARE FOR 1992 THE CONCERN HAD NET INCOME OF 44 MILLION OR 31 CENTS A SHARE AFTER THE CHARGE MR DAREHSHORI SAID FOURTHQUARTER RESULTS ARE EXPECTED TO BE SLIGHTLY BETTER THAN BREAKEVEN WHILE YEAREND 1994 NET INCOME SHOULD AT LEAST REACH 275 A SHARE HE SAID FOR THE 1992 FOURTH QUARTER HOUGHTON RECORDED A LOSS OF 273 MILLION OR 198 A SHARE AFTER THE CHARGE HOUGHTON SAID IT PLANS TO SPIN OFF ITS SOFTWARE DIVISION WHICH MAKES PROOFREADING SPELL CHECK AND REFERENCE SOFTWARE INTO A NEWLY FORMED COMPANY INFOSOFT INTERNATIONAL INC WHICH WILL OFFER SHARES TO THE PUBLIC 9310150127 931015 US SURGICAL POSTS 3RDQUARTER LOSS DIVIDEND CUT AND LAYOFFS ARE PLANNED BY RON WINSLOW STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK US SURGICAL CORP REPORTED ITS SECOND CONSECUTIVE QUARTERLY LOSS AND SAID IT WILL LAY OFF 8 OF ITS WORK FORCE SLASH ITS DIVIDEND BY 73 AND CUT EXECUTIVE PAY IN A COSTCUTTING PROGRAM THE NORWALK CONN MAKER OF SURGICAL STAPLES AND EQUIPMENT USED IN MINIMALLY INVASIVE SURGERY ALSO SAID IT WILL CLOSE MANUFACTURING PLANTS FOR 13 DAYS IN NOVEMBER AND DECEMBER AND THAT PRODUCTION EMPLOYEES WILL GO ON A FOURDAY WORK WEEK BEGINNING JAN 1 THE QUARTERLY DIVIDEND IS SLASHED TO TWO CENTS A SHARE FROM 75 CENTS A SHARE LEON HIRSCH CHAIRMAN TOLD SECURITY ANALYSTS THE MOVES WILL CUT 60 MILLION IN OPERATING COSTS THE LAYOFFS AFFECT 700 EMPLOYEES INCLUDING ABOUT 500 IN CONNECTICUT AND 200 OVERSEAS THE STEPS WILL LEAVE THE COMPANY IN A SIGNIFICANTLY MORE COMPETITIVE POSITION AND IMPROVE CASH FLOW AND EARNINGS HE SAID THE MOVES REFLECT THE COMPANY'S TROUBLES IN A MARKET FOR SURGICAL EQUIPMENT THAT IS BUFFETED BY FIERCE COMPETITION AND UNCERTAINTIES OVER PRESIDENT CLINTON'S HEALTH REFORM PROGRAM THEY ALSO RESULT FROM SURPLUS INVENTORIES IN HOSPITALS OF MANY OF ITS KEY PRODUCTS THAT THE COMPANY ATTRIBUTES TO A SWITCH EARLIER THIS YEAR TO A NEW SOCALLED JUSTINTIME DISTRIBUTION PROGRAM DANIEL LEMAITRE AN ANALYST AT COWEN & CO BOSTON SAID THE ACTIONS INDICATE THE COMPANY IS SERIOUS ABOUT STANCHING A WORRISOME CASHFLOW PROBLEM THEY PROBABLY BOUGHT THEMSELVES TIME TO WEATHER THE STORM BETTER HE SAID BUT MANY UNCERTAINTIES REMAIN ABOUT PROSPECTS FOR THE COMPANY'S KEY MARKETS HE SAID WHILE FEW INVESTORS OWN US SURGICAL'S SHARES FOR ITS DIVIDEND ANALYSTS WERE SURPRISED BY THE COMPANY'S DECISION TO CUT THE PAYOUT THAT'S A SHOT OVER THE BOW TO LET PEOPLE KNOW THEY'RE SERIOUS ABOUT STRENGTHENING THE BALANCE SHEET MR LEMAITRE SAID THE CUT IS EFFECTIVE FOR DIVIDENDS PAYABLE ON DEC 10 TO SHAREHOLDERS OF RECORD NOV 24 FOR THE THIRD QUARTER THE COMPANY POSTED A LOSS OF 143 MILLION OR 26 CENTS A SHARE ON A 19 DECLINE IN SALES TO 2377 MILLION THE LOSS INCLUDES AN AFTERTAX CHARGE OF 6 MILLION OR 11 CENTS A SHARE FOR THE COSTCUTTING MOVES IN THE 1992 THIRD QUARTER THE COMPANY HAD A PROFIT OF 365 MILLION OR 61 CENTS A SHARE ON SALES OF 2933 MILLION EARLIER THIS YEAR MR HIRSCH SAID HE EXPECTED THE COMPANY WOULD BE PROFITABLE BY THE FOURTH QUARTER HE DECLINED TO REPEAT THAT PROJECTION YESTERDAY OR MAKE ANY PREDICTIONS ABOUT FUTURE EARNINGS THIS IS A VERY FLUID MARKET HE SAID I DON'T THINK THIS IS THE TIME TO CONJECTURE ABOUT PROFITS HE SAID THE COMPANY'S CHIEF FINANCIAL GOAL FOR 1994 IS TO ACHIEVE POSITIVE CASHFLOW HE SAID NEITHER THE COMPANY'S 550 PERSON SALES FORCE NOR ITS PRODUCTION WORKERS IN CONNECTICUT AND PUERTO RICO WOULD BE AFFECTED BY THE LAYOFFS THE PRODUCTION FORCE HE SAID IS WELLTRAINED AND NECESSARY FOR FUTURE GROWTH AND RATHER THAN REDUCE THE NUMBERS THE COMPANY DECIDED TO REDUCE THE WORKWEEK CORPORATE OFFICERS WILL TAKE A 10 PAY CUT AND MR HIRSCH HIMSELF WILL TAKE A 20 SALARY CUT FOR 1994 WAGES WILL BE FROZEN FOR ALL OTHER EMPLOYEES HE ALSO SAID CAPITAL SPENDING IN 1994 WOULD BE ABOUT 90 MILLION DOWN FROM 225 MILLION THIS YEAR THE REDUCTION HE ADDED MOSTLY REFLECTS COMPLETION OF BUILDING AND EXPANSION PROJECTS IN THE US AND FRANCE 9310150126 931015 TECHNOLOGY SUN MICROSYSTEMS' FISCAL 1STPERIOD NET TRIPLED BUT BARELY MET EXPECTATIONS BY CHARLES MCCOY STAFF REPORTER OF THE WALL STREET JOURNAL MOUNTAIN VIEW CALIF SUN MICROSYSTEMS INC SAID FISCAL FIRSTQUARTER PROFIT TRIPLED TO 166 MILLION BUT THE RESULTS BARELY MET WALL STREET'S DIMINISHED EXPECTATIONS FOR THE PERIOD AND REKINDLED CONCERNS ABOUT THE COMPANY'S DIRECTION PROFIT IN THE QUARTER ENDED SEPT 30 WORKED OUT TO 16 CENTS A SHARE AS RECENTLY AS THREE WEEKS AGO MANY ANALYSTS HAD BEEN PROJECTING THAT SUN THE MARKET LEADER IN WORKSTATIONS WOULD EARN MORE THAN 35 CENTS A SHARE IN RECENT DAYS SEVERAL ANALYSTS HAD TRIMMED THEIR FORECASTS BACK TO A RANGE OF ABOUT 15 TO 20 CENTS CITING SUCH SIGNALS AS RECENTLY DISCLOSED REDUCTIONS IN THE FISCAL 1992 SALARY AND BONUS OF SUN CHIEF EXECUTIVE OFFICER SCOTT MCNEALY AMONG OTHER THINGS THE QUARTERLY EARNINGS COMPARED WITH LAST YEAR'S DEPRESSED FIRSTQUARTER PROFIT OF 48 MILLION OR FIVE CENTS A SHARE LAST YEAR AT THIS TIME SUN WAS REELING FROM PRODUCT DELAYS AND OTHER SNAFUS THE PROFIT CAME DESPITE A RELATIVELY ROBUST 12 RISE IN REVENUE WHICH TOTALED 9605 MILLION FOR THE QUARTER INCREASING FROM 8559 MILLION A YEAR EARLIER BUT SUN'S GROSS PROFIT MARGINS A KEY INDICATOR OF PROFITABILITY NARROWED TO 409 FROM 422 MOREOVER SUN'S EUROPEAN SALES FELL 12 IN THE QUARTER FROM YEAREARLIER LEVELS THE RESULTS WERE RELEASED AFTER THE MARKET CLOSED YESTERDAY SUN'S STOCK ROSE 1375 OR 64 TO CLOSE AT 23 A SHARE YESTERDAY IN NATIONAL OVERTHECOUNTER TRADING SINCE JANUARY SUN'S STOCK HAS FALLEN FROM A HIGH OF 41 A SHARE SUN'S CHIEF FINANCIAL OFFICER KEVIN MELIA SAID THE TIGHTENED MARGINS MAINLY REFLECTED INCREASED COSTS OF MANUFACTURING AND DIDN'T INDICATE THAT SUN IS HAVING TO CUT PRICES TO HANG ONTO MARKET SHARE HE SAID SUN KEPT A LID ON COSTS AND HAD GOOD SALES GROWTH EVERYWHERE BUT EUROPE OVERALL WE'RE UPBEAT ABOUT THIS QUARTER HE SAID THERE ARE A FEW BUMPS IN THE ROAD BUT LIFE IS LIKE THAT SOME ANALYSTS WEREN'T SO SANGUINE FOR ONE THING THE TIGHTENING MARGINS RAISED QUESTIONS ABOUT HOW EFFECTIVELY SUN IS STAVING OFF ASSAULTS BY AGGRESSIVE RIVALS SUCH AS HEWLETTPACKARD INC AND SILICON GRAPHICS INC ALTHOUGH SUN COMMANDS ABOUT 40 OF THE WORKSTATION MARKET THOSE RIVALS AND OTHERS HAVE RECENTLY INTRODUCED POWERFUL AND RELATIVELY INEXPENSIVE MACHINES AIMED AT SUN'S MARKETS THE MARGIN LOOKS A LITTLE THIN AND EUROPE IS IN THE TANK SAID DOUG VAN DORSTEN TECHNOLOGY ANALYST WITH HAMBRECHT & QUIST A REAL QUESTION FOR THIS COMPANY IS WHEN IS DEMAND GOING TO PICK UP AND WHEN ARE WE GOING TO SEE AN UPTICK IN EUROPE THE LATEST QUARTER CONTINUES A LONG PERIOD OF SEESAW PERFORMANCE BY SUN THAT HAS MADE INVESTORS WARY SUN HAD A BLOCKBUSTER FISCAL FOURTH QUARTER EARNING 761 MILLION OR 72 CENTS A SHARE FAR SURPASSING ANALYSTS' PROJECTIONS ITS TECHNOLOGY GETS HIGH MARKS BUT IT HAS BEEN HAUNTED BY PRODUCTION PROBLEMS AND OTHER MISCUES THE LATEST STUMBLE CAME IN AUGUST WHEN THE NATIONAL SECURITY AGENCY SUSPENDED A 200 MILLION WORKSTATION CONTRACT AFTER ALLEGATIONS FROM COMPETITORS THAT SUN MISREPRESENTED ITS MACHINE'S CAPABILITIES IN ADDITION SUN HAS RECENTLY EMBARKED ON NEW STRATEGIES THAT HAVE MET WITH SOME SKEPTICISM INCLUDING A PLAN ANNOUNCED LAST WEEK TO START SELLING ITS SEMICONDUCTORS TO OTHER COMPUTER AND ELECTRONICS COMPANIES THE MOVE IS LARGELY TO FEND OFF COMPETITION FROM CHIP JUGGERNAUT INTEL CORP'S NEW PENTIUM CHIP AND THE POWERPC CHIP BEING DESIGNED BY AN ALLIANCE AMONG INTERNATIONAL BUSINESS MACHINES CORP APPLE COMPUTER INC AND MOTOROLA INC MR MELIA REMAINS UPBEAT HE SAID SUN'S CHALLENGE IS TO COMPLETE THE TRANSITION FROM BEING PERCEIVED AS A SUPPLIER OF TECHNOLOGICALLY IMPRESSIVE MACHINES TO BEING A BROADRANGE TECHNOLOGY SUPPLIER TO THE BIGGEST CORPORATIONS IN THE COUNTRY HE SAID SUN IS ON THE RIGHT TRACK WE'VE GOT THIS MACHINE IN VERY EFFICIENT CONDITION OUR FUNDAMENTALS CONTINUE TO IMPROVE AND OUR MACHINES ARE BEING VERY WELL RECEIVED 9310150125 931015 A TEST OF WILL THE UN IS MAKING PROGRESS IN SOMALIA BUT TIME GROWS SHORT EFFORT IN BOSSASO TO REBUILD GOVERNMENT UNITE CLANS IS TRICKY AND FRUSTRATING BULLETS AND AMERICAN OPINION BY GERALDINE BROOKS STAFF REPORTER OF THE WALL STREET JOURNAL MOGADISHU SOMALIA A US GUNNER WITH ANGEL OF DEATH STENCILED ON HIS HELMET PEERS FROM THE DOOR OF A BLACK HAWK HELICOPTER AS IT LIFTS OFF OVER THE RAZORWIRED WALLS OF THE UNITED NATIONS COMPOUND HERE THE TRIP BY ROAD TO THE NEARBY AIRPORT IS ONLY 15 MINUTES BUT SENIOR UN PERSONNEL CAN'T RISK THE DRIVE THE ROAD WINDS THROUGH MARKETS AND RESIDENTIAL QUARTERS TEEMING WITH SUPPORTERS OF GEN MOHAMED FARRAH AIDID WHO REFER TO THE UN COMPOUND AS THE MURDERERS' VILLAGE EVEN THE HELICOPTER RIDE IS PRECARIOUS TRACKING A DOGLEGGED COURSE THAT KEEPS IT OUT OF RANGE OF ROCKETPROPELLED GRENADES THE PROTRACTED RIDE GIVES KOFI ANNAN UN UNDERSECRETARY GENERAL FOR PEACEKEEPING AMPLE TIME TO SURVEY THE RUIN THAT THE UN CAME HERE TO REBUILD MR ANNAN A GHANAIAN KNEW MOGADISHU WHEN IT WAS A SLEEPY SEAPORT MADE BRIEFLY PROSPEROUS BY OILBOOM REMITTANCES NOW THE LEVEL OF DESTRUCTION IS ALMOST UNBELIEVABLE SAYS THE 55YEAROLD DIPLOMAT ALMOST AS BAD AS BEIRUT ON WEDNESDAY AS MR ANNAN FLEW OUT OF SOMALIA AFTER A FOURDAY VISIT HE LEFT BEHIND A MISSION AT RISK OF CRUMBLING INTO RUINS ITSELF AND TAKING WITH IT MANY OF THE WORLD'S HOPES FOR POSTCOLD WAR PEACEMAKING PERHAPS THE WORLD IS GOING TO TAKE THE DECISION THAT WE DON'T HAVE THE STOMACH FOR THIS IT'S TOO RISKY MR ANNAN SAYS BUT WHAT TROUBLES HIM AND OTHER UN OFFICIALS IS THAT THE DECISION IS BEING MADE BY A WORLD AND PARTICULARLY AN AMERICAN PUBLIC WITHOUT A CLEAR PICTURE OF WHAT THE UN IS DOING IN SOMALIA BEYOND DEFENDING ITSELF FROM BLOODY ATTACKS BY GEN AIDID'S MILITIA IN FACT THERE IS NATIONBUILDING ALREADY UNDER WAY HERE IT IS SLOW TEDIOUS DIFFICULT WORK CONDUCTED FAR FROM THE ANARCHY OF THE CAPITAL YET SUCH EFFORTS LIKE THOSE OF A UN TEAM IN THE REGIONAL TOWN OF BOSSASO ABOUT 650 MILES NORTHEAST OF THE CAPITAL ALREADY ARE PAYING OFF IN SMALL IF UNDRAMATIC WAYS THERE OUT OF A SHABBY VILLA FLYING THE UN FLAG AN INTERNATIONAL TEAM OF UN WORKERS FROM THE US KENYA BRITAIN GHANA DENMARK AND AUSTRALIA HAS BEGUN THE PAINSTAKING TASK OF PIECING BACK THE GOVERNMENT COURTS POLICE AND SCHOOLS RIPPED APART BY CLAN WARFARE WHETHER SUCH EFFORTS FLOWER IN TIME INTO A STABLE DEMOCRATIC SOMALIA MAY LARGELY DEPEND UPON INTERNATIONAL WILL THE VILLA A HALFFINISHED RESIDENCE OWNED BY ONE OF THE FEW STILLWEALTHY FAMILIES IN SOMALIA IS THE BEST ACCOMMODATION THE UN COULD FIND IN THIS BATTERED TOWN AND IS RENTED FOR AN EXTORTIONATE 8000 A MONTH IT HAS JUST ONE WORKING BATHROOM FOR A STAFF OF NINE PLUS A STEADY STREAM OF VISITORS TRAVELING AID WORKERS AND EVEN MEMBERS OF THE US SPECIAL FORCES DESPITE US GOVERNMENT CLAIMS THAT ITS TROOPS AREN'T ENGAGED IN NATIONBUILDING THREE HUMVEES FULL OF SPECIAL FORCES SOLDIERS HAVE CAMPED IN THE UN'S SITTING ROOM HERE THEIR TASKS REPAIRING THE ROOF OF A NEARBY POLICE STATION BUILDING A BASKETBALL COURT FOR LOCAL YOUNGSTERS AND PROVIDING EMERGENCY MEDICAL CARE FOR AN INJURED FISHERMAN AS CRAMPED AND SPARTAN AS CONDITIONS ARE INSIDE THE VILLA THEY ARE PARADISE COMPARED WITH THE LIVING CONDITIONS OF SOMALIS OUTSIDE LIKE MOST TOWNS HERE BOSSASO ON THE GULF OF ADEN IS CHOKED BY REFUGEES DISPLACED FROM THEIR OWN REGIONS BY CLAN FIGHTING CRUDE SHELTERS BUILT OF DRIFTWOOD GRASS AND CARDBOARD HOUSE RAGGED FAMILIES AND THEIR REMNANT LIVESTOCK GOATS AMBLE THROUGH DIRTFLOORED SLEEPING QUARTERS AND AID GROUPS CAN'T KEEP UP WITH THE DEMAND FOR LATRINES IN THE HUMID HEAT OF THIS EQUATORIAL PORT THE STENCH OF ROTTING TRASH HUMAN SWEAT AND FECES HANGS OVER THE TOWN LIKE A BLANKET THERE ARE AS YET NO FUNCTIONING SCHOOLS AND THE HOSPITAL SAYS ONE US AID WORKER IS A PLACE I WOULDN'T PUT A DOG THE NEED FOR NATIONBUILDING ANY BUILDING IS OBVIOUS INSIDE THE VILLA A WHEEZING AIR CONDITIONER IS ALREADY LOSING THE BATTLE WITH THE EARLY MORNING HEAT JANET HEMMING A MIDCAREER DIPLOMAT ON A YEAR'S LEAVE FROM THE AUSTRALIAN FOREIGN SERVICE SITS IN FRONT OF A HUGE TACTICAL PILOTAGE CHART OF NORTHEASTERN SOMALIA AND PREPARES TO RECEIVE THE DAY'S THIRD GROUP OF VISITORS THE ISKUSHUBAN ELDERS ARE AT THE GATE TWO TRUCKLOADS OF THEM SAYS MAHMOUD MS HEMMING'S SOMALI ASSISTANT TWENTY OF THEM WANT TO SEE YOU TELL THEM TO SEND IN 10 SAYS MS HEMMING REACHING FOR WHAT SHE CALLS HER CHEAT SHEET A HANDDRAWN FAMILY TREE OF NORTHEASTERN SOMALIA'S EXCRUCIATINGLY COMPLEX CLAN STRUCTURE FROM IT SHE QUICKLY REMINDS HERSELF OF THE RELATIONSHIP BETWEEN CLANS SUBCLANS AND SUBSUBCLANS OF THE ISKUSHUBAN REGION WHEN I FIRST GOT HERE I COULDN'T EVEN SPELL MOHAMED' MUCH LESS TELL YOU THE DIFFERENCE BETWEEN AN OMAR ALI SUBCLAN AND AN ISMAIL ALI SUBCLAN SAYS MS HEMMING HER SPECIALTY BEFORE SOMALIA WAS PHILIPPINE INSURGENCY AND SOUTHEAST ASIAN REGIONAL POLITICS SHE SLIPS THE CHEAT SHEET OUT OF SIGHT AS MAHMOUD USHERS IN 19 ISKUSHUBAN ELDERS SOME DRESSED IN TURBANS EMBROIDERED CAPS AND MAWIS THE TRADITIONAL SOMALI WRAPPED SKIRT MS HEMMING'S JOB IS TO HELP THESE SOMALIS FORM DISTRICT COUNCILS IN WHAT IS SUPPOSED TO BE THE FIRST STEP IN REBUILDING A SOMALI GOVERNMENT THE 21MEMBER DISTRICT COUNCILS WILL MAKE DECISIONS ON HOW AID MONEY IN THEIR AREAS IS TO BE SPENT THEY WILL ALSO SELECT THREE MEMBERS FROM AMONG THEIR NUMBER TO SIT ON REGIONAL COUNCILS FROM WHICH IN TURN WILL BE FORMED THE TRANSITIONAL NATIONAL COUNCIL MEANT TO STEER SOMALIA TO ELECTIONS IN 1995 THAT AT LEAST IS THE THEORY SO FAR SOME 38 OF A PROPOSED 61 DISTRICT COUNCILS HAVE BEEN FORMED AND ONLY TWO REGIONAL COUNCILS ONE DIFFICULTY HAS BEEN THE UN'S INSISTENCE THAT EACH DISTRICT COUNCIL INCLUDE AT LEAST ONE WOMAN A CONCEPT SO ALIEN IN MANY REMOTE PARTS OF THIS TRADITIONAL MALEDOMINATED SOCIETY THAT MANY CLAN LEADERS REFUSED TO TAKE THE STIPULATION SERIOUSLY IN ONE DISTRICT WHEN THE UN REFUSED TO BACK DOWN ON THE ISSUE THE 21 MEN BALLOTED AMONG THEMSELVES THE LOSER GIVING UP HIS SEAT TO HIS WIFE FOR POLITICAL OFFICERS SUCH AS MS HEMMING RESOLVING SUCH IMPASSES IS THE DIPLOMATIC CHALLENGE OF A LIFETIME AS THE ISKUSHUBAN JOSTLE FOR SEATS IN HER OFFICE A SPOKESMAN GETS DOWN TO BUSINESS PRESENTING MS HEMMING WITH A LIST OF 21 NAMES WHICH HE SAYS REPRESENTS THE INPUT AND AGREEMENT OF ALL THE CLANS AND SUBCLANS IN THE ISKUSHUBAN REGION MS HEMMING PROPS A PAIR OF RIMLESS HALFGLASSES ON A SLIGHTLY SUNBURNED NOSE AND SCANS THE LIST SKEPTICALLY UNDER HER BREATH SHE MUTTERS THERE ARE SO MANY PROBLEMS WITH THIS IT'S UNREAL LOOKING UP SHE SAYS ALOUD THIS IS VERY IMPRESSIVE BUT I THINK I AM GOING TO HAVE A LOT OF PEOPLE IN THIS OFFICE TOMORROW DISAGREEING WITH THIS LIST THE ELDERS SHAKE THEIR HEADS AS THEIR SPOKESMAN PROTESTS THE LIST IS COMPLETELY REPRESENTATIVE AND COMPLAINTS FROM SUBCLANS THAT THEY HAVE BEEN LEFT OUT ARE FRIVOLOUS HE ASSERTS WELL SAYS MS HEMMING THAT'S VERY GOOD NEWS BUT I'LL WAIT A COUPLE OF DAYS ANYWAY JUST TO SEE WHO COMES IF I'M SATISFIED THAT THEIR COMPLAINTS ARE UNFOUNDED I'LL ASK MOGADISHU TO SEND AN OFFICIAL UP HERE TO RATIFY YOUR CHOICE MS HEMMING'S CAUTION IS UNDERSTANDABLE A FEW WEEKS EARLIER SHE AND A SENIOR UN OFFICIAL TRAVELED TO THE REGION OF POSEDLY AGREEDUPON COUNCIL THERE WHEN WE ARRIVED IT WAS LIKE A SCENE FROM HIERONYMUS BOSCH MS HEMMING SAYS YOU WOULDN'T BELIEVE THE YELLING AND FIGHTING AS THE ISKUSHUBAN FILE OUT OF HER OFFICE SHE LOOKS UP A LIST SHE HAS MADE OF THE REGION'S DISSIDENTS AND WHERE THEY CAN BE CONTACTED IN A REGION WITHOUT PHONES OR POSTAL SERVICE SHE WILL SEND HER SOMALI ASSISTANT TO THE VARIOUS FISHING COOPS AND GENERAL STORES TO LEAVE WORD FOR THE POTENTIALLY DISAFFECTED THAT SHE WOULD LIKE A MEETING WITH THEM THAT DONE SHE TAKES A BREAK FOR LUNCH WHAT HAVE WE GOT TODAY MOUSSA SHE ASKS THE SOMALI COOK WHO LEARNED HIS TRADE DURING 25 YEARS IN THE BRITISH ARMY MESS IN ADEN YEMEN GOAT SHE SAYS PRODDING THE MEAT SUSPICIOUSLY I'VE NEVER REALLY BEEN A BIG FAN OF GOAT OVER LUNCH MS HEMMING AND HER COLLEAGUES COMPARE NOTES ON PROGRESS DOUG IERLEY A LAWYER AND HUMANRIGHTS RESEARCHER FROM MORRISTOWN NJ HAS BEEN TRAVELING THE REGION CONDUCTING A SURVEY OF POLICE AND COURTS BUT HIS WORK CAN'T PROGRESS UNTIL REGIONAL COUNCILS ARE ESTABLISHED TO CHOOSE JUDGES MARGARET MAINA A KENYAN ADMINISTRATOR ADMITS SHE IS STILL BAFFLED BY THE CLAN SQUABBLES IN KENYA SHE SAYS WE HAVE 42 TRIBES DIFFERENT LANGUAGES DIFFERENT RELIGIONS HERE THERE'S ONE TRIBE ONE LANGUAGE ONE RELIGION AND YET STILL THEY CAN'T STOP FIGHTING A COLLEAGUE HAS JUST RETURNED FROM A NEARBY TOWN WHERE A NEWLY FORMED COUNCIL IS SITTING THROUGH A SIXDAY SEMINAR ON HOW TO RUN A DEMOCRATIC GOVERNMENT HE WONDERS ALOUD WHETHER THE PARTICIPANTS ARE AS INTERESTED IN THE DEMOCRATIC IDEALS BEING EXPOUNDED AS THEY ARE IN THE PER DIEM THE UN IS PAYING FOR THEIR ATTENDANCE BUT ANOTHER COLLEAGUE TELLS HIM HE IS BEING TOO CYNICAL PEOPLE FORGET THAT THIS PLACE WAS NEVER SWITZERLAND EVEN BEFORE THE WAR AND THE FAMINE AND IT ISN'T GOING TO BE SWITZERLAND WHEN WE'RE DONE HERE ALL WE ARE TRYING TO DO IS GIVE THE PLACE A CHANCE TO FUNCTION AGAIN EVEN AT THE MOST BASIC LEVEL BUT EVEN THAT HUMBLE AMBITION MIGHT PROVE TOO MUCH TO ASK OF A WORLD COMMUNITY AND ESPECIALLY AN AMERICAN PUBLIC REPELLED BY THE SCENES OF BLOODSHED AND BARBARISM IN SOUTHERN MOGADISHU BACK IN THAT BELEAGUERED CITY UN OFFICIALS ARE BITTERLY CRITICAL OF WHAT THEY SEE AS APPEASEMENT BY THE US ENVOY ROBERT OAKLEY OF MR AIDID THEY SAY THAT MUCH OF THE CURRENT MESS CAN BE ATTRIBUTED TO MR OAKLEY'S EARLIER ERRORS AMONG THEM REFUSING TO DESTROY A HUGE CACHE OF MR AIDID'S ARMAMENTS AS THE UN REQUESTED LATE LAST YEAR IN WASHINGTON A STATE DEPARTMENT OFFICIAL RESPONDED ANGRILY TO THE CHARGES DISMISSING THE REFERENCES TO MR OAKLEY'S EARLIER ERRORS AS REVISIONIST HISTORY THE OFFICIAL ADDED OAKLEY HAS TAKEN GREAT CARE TO MEET RELIGIOUSLY WITH UN OFFICIALS TO REMAIN CLOSELY IN CONTACT WITH THEM AND HE HAS STRESSED IN MANY MEETINGS THAT HE'S HAD THAT HIS EFFORTS ARE DESIGNED TO COMPLEMENT THE EFFORTS OF THE UN UN SOURCES ALSO SAY THE PENTAGON AND THE US ADMINISTRATION HAVE BEEN SWIFT TO SHIFT THE BLAME FOR THEIR OWN BLUNDERS ONTO RETIRED ADMIRAL JONATHAN HOWE THE UN REPRESENTATIVE IN SOMALIA THEY POINT OUT THAT THE DECISION TO FINGER MR AIDID WAS MADE IN THE SECURITY COUNCIL WHERE MADELEINE ALBRIGHT OF THE US WIELDS MORE CLOUT THAN ANYONE FURTHER THEY SAY THAT THE IDEA FOR THE NOW CONTROVERSIAL WANTED POSTER OF GEN AIDID CAME FROM US MILITARY PSY OPS OR PSYCHOLOGICAL OPERATIONS AND NOT FROM ADM HOWE TO THE UN THE RISK IS THAT APPEASING GEN AIDID WILL SEND THE MESSAGE TO SOMALIA'S OTHER 12 FACTIONS WHO HAVE SO FAR COOPERATED WITH UN EFFORTS THAT THE BEST WAY TO GET WHAT THEY WANT IS TO KILL PEACEKEEPERS AND CAPTURE US SOLDIERS YESTERDAY THE SOMALI CLAN LEADER RELEASED US HELICOPTER PILOT MICHAEL DURANT HELD FOR 11 DAYS AND A NIGERIAN SOLDIER CAPTURED EARLY LAST MONTH MEANWHILE MR AIDID NEED ONLY WAIT UNTIL THE US TROOPS PULL OUT AND THEN RESUME HIS CAMPAIGN TO SNATCH THE SOMALI PRESIDENCY AT ANY COST TO MR ANNAN WHO OVERSEES 17 SEPARATE PEACEKEEPING OPERATIONS AROUND THE WORLD THE LESSONS THAT WILL BE DRAWN FROM SOMALIA REACH FAR BEYOND ITS BORDERS SINCE THE ESTABLISHMENT OF THE UN IN 1945 1023 PEACEKEEPERS HAVE LOST THEIR LIVES 170 OF THEM THIS YEAR ALONE MR ANNAN DOESN'T WANT TO SEE THAT NUMBER ESCALATE THERE IS AN ATTITUDE NOW THAT PEACEKEEPERS DO GET KILLED IT'S NORMAL IT'S OK HE SAYS WE HAVE TO TAKE A STAND SOMEWHERE THAT SAYS IT'S NOT RIGHT TO KILL PEACEKEEPERS IT'S NOT RIGHT TO HARASS THEM 9310150124 931015 HAVAS SAYS NET FELL BY 34 IN FIRST HALF ON HIGHER REVENUE SPECIAL TO THE WALL STREET JOURNAL PARIS HAVAS SA THE FRENCH MEDIA AND TOURISM GROUP REPORTED THAT FIRSTHALF NET INCOME FELL 34 TO 423 MILLION FRANCS 748 MILLION FROM 438 MILLION FRANCS A YEAR EARLIER HAVAS ALSO EXPECTS TO POST A DECLINE IN FULLYEAR 1993 EARNINGS FROM 823 MILLION FRANCS IN 1992 THIS IS IN LINE WITH A PREVIOUS PREDICTION MADE BY HAVAS CHAIRMAN PIERRE DAUZIER CONSOLIDATED REVENUE GAINED 41 TO 148 BILLION FRANCS ON A NOMINAL BASIS FROM 142 BILLION FRANCS A YEAR EARLIER AND WAS UP 49 ON A CONSTANT EXCHANGE RATE AND CONSOLIDATION BASIS REVENUE OUTSIDE FRANCE REPRESENTED 38 OF REVENUE IN THE LATEST HALF UP FROM 34 A YEAR EARLIER PRETAX OPERATING PROFIT WAS DOWN 11 TO 864 MILLION FRANCS CASH FLOW FELL 36 TO 612 MILLION FRANCS HAVAS'S INVESTMENTS TOTALED 989 MILLION FRANCS IN THE FIRST HALF UP FROM 943 MILLION FRANCS IN THE YEAREARLIER PERIOD LOOKING AHEAD HAVAS SAID IT EXPECTS THE SLUGGISH TRENDS IN BILLBOARDS ADVERTISING AND TOURISM ARE LIKELY TO CONTINUE IN THE SECOND HALF DURING THE SUMMER MR DAUZIER ALSO SAID HE FEARED THAT 1994 WOULDN'T BRING A SIGNIFICANT IMPROVEMENT IN THE COMPANY'S PRINCIPAL MARKET SECTORS 9310150123 931015 WHO'S NEWS PANAMSAT SHUFFLES EXECUTIVE POSITIONS IN US AND ABROAD GREENWICH CONN PANAMSAT LP A CLOSELY HELD SATELLITECOMMUNICATIONS CONCERN SAID IT SHUFFLED AND RESTRUCTURED EXECUTIVE POSITIONS IN ITS US AND OVERSEAS OPERATIONS MIKE ANTONOVICH 34 YEARS OLD WAS NAMED VICE PRESIDENT OF BROADCAST SERVICES SUCCEEDING JACK ALBERT 53 WHO LEFT THE COMPANY LAST MONTH TO BECOME SENIOR VICE PRESIDENT AND GENERAL MANAGER OF ORION SATELLITE CORP A UNIT OF RIVAL SATELLITECOMMUNICATIONS FIRM ORION NETWORK SYSTEMS INC ROCKVILLE MD MR ANTONOVICH WAS FORMERLY DIRECTOR OF BROADCAST SERVICES A POSITION DAVID BERMAN 41 WILL NOW FILL REVERGE ANSELMO 31 WAS MADE REGIONAL VICE PRESIDENT OF PANAMSAT'S LATIN AMERICAN OPERATIONS MR ANSELMO SON OF COMPANY FOUNDER AND 50 OWNER RENE ANSELMO WAS FORMERLY GENERAL MANAGER OF EUROPEAN OPERATIONS AMANDA EASTMAN 34 FORMERLY DIRECTOR OF NEWMARKET DEVELOPMENT FOR LATIN AMERICA WAS NAMED REGIONAL VICE PRESIDENT OF EUROPEAN OPERATIONS A SPOKESMAN SAID THE CHANGES ARE PART OF A GENERAL RESTRUCTURING AND EXPANSION EFFORT AT THE COMPANY WHICH IN 1992 HAD REVENUE OF 403 MILLION 9310150122 931015 NORWAY'S TRADE SURPLUS OSLO NORWAY'S TRADE SURPLUS FELL 45 TO 187 BILLION KRONER 2657 MILLION IN SEPTEMBER FROM THE SAME MONTH A YEAR EARLIER LARGELY BECAUSE OF DECLINING CRUDEOIL EXPORTS AND HIGHER IMPORTS THE NATIONAL STATISTICS AGENCY SAID EXCLUDING OIL AND GAS EXPORTS WERE DOWN 2 IN THE MONTH TO 939 BILLION KRONER PRIMARILY BECAUSE OF LOWER COD EXPORTS IN THE NINE MONTHS TO SEPTEMBER NORWAY'S TRADE SURPLUS AMOUNTED TO 4379 BILLION KRONER UP 20 FROM 366 BILLION KRONER IN THE YEAREARLIER PERIOD 9310150121 931014 EARNINGS SURPRISES COMPANIES LISTED BELOW REPORTED QUARTERLY PROFIT SUBSTANTIALLY DIFFERENT FROM THE AVERAGE OF ANALYSTS' ESTIMATES THE COMPANIES ARE FOLLOWED BY AT LEAST THREE ANALYSTS RESULTS IN PARENTHESES ARE LOSSES THE PERCENT DIFFERENCE COMPARES ACTUAL PROFIT WITH THE 30DAY ESTIMATE WHERE AT LEAST THREE ANALYSTS HAVE ISSUES FORECASTS IN THE PAST 30 DAYS OTHERWISE ACTUAL PROFIT IS COMPARED WITH THE 120DAY ESTIMATE 9310150120 931015 POLITICS & POLICY VIRGINIA'S DEMOCRATS FOCUS THEIR FIERCEST FIRE ON GOP GUBERNATORIAL TICKET'S BOTTOM HALF BY JAMES M PERRY STAFF REPORTER OF THE WALL STREET JOURNAL RICHMOND VA DEMOCRATIC SUPPORTERS OF MARY SUE TERRY WHO IS SEEKING TO BECOME VIRGINIA'S FIRST WOMAN GOVERNOR TALK ENDLESSLY ABOUT THE CLIMATE THEY DON'T MEAN THE WEATHER IT'S BEEN BEAUTIFUL LATELY THEY MEAN THE LOW ESTATE INTO WHICH THE DEMOCRATIC PARTY HAS FALLEN IN THE OLD DOMINION VOTERS TEND TO DISTRUST PRESIDENT CLINTON AND THEY FLAT OUT ARE FED UP WITH SEN CHARLES ROBB AND GOV DOUGLAS WILDER THE STATE'S TWO LEADING DEMOCRATS WHO HAVE SPENT MOST OF THEIR POLITICAL CAREERS FEUDING WITH ONE ANOTHER WE'RE RUNNING INTO A HEAD WIND ADMITS MS TERRY 46 YEARS OLD THE STATE'S TWOTERM ATTORNEY GENERAL UNTIL SHE RESIGNED TO SEEK THE GOVERNORSHIP MY OPPONENT IS RUNNING WITH A TAIL WIND HER OPPONENT IS FORMER GOP CONGRESSMAN GEORGE ALLEN 41 A CITY BOY WHO WEARS COWBOY BOOTS DIPS SNUFF AND BOASTS THAT HE LIVES IN A LOG HOUSE HIS FATHER THE LATE GEORGE ALLEN COACHED THE WASHINGTON REDSKINS BUT IF THERE ARE HEAD WINDS AND TAIL WINDS IN VIRGINIA THERE ARE ALSO CROSSWINDS AND THEY MAY BE THE MOST INTRIGUING OF ALL THE ROUGHEST CROSSWIND IS THE REPUBLICAN CANDIDATE FOR LIEUTENANT GOVERNOR A LAWYER AND FUNDAMENTALIST PREACHER NAMED MICHAEL P FARRIS MR FARRIS RUNS THE HOME SCHOOL LEGAL DEFENSE ASSOCIATION WHERE HE HAS REPRESENTED CLIENTS WHO OBJECT TO PUBLIC SCHOOLS ASSIGNING THE WIZARD OF OZ AND RUMPELSTILTSKIN BECAUSE THEY CONTAIN REFERENCES TO MAGIC MR FARRIS 42 DISTRUSTS PUBLIC SCHOOLS BECAUSE THEY TEACH WHAT HE CALLS SECULAR HUMANISM HE PRACTICES WHAT HE PREACHES BY HELPING HIS WIFE VICKIE EDUCATE THEIR NINE CHILDREN AT THEIR HOME IN RURAL LOUDOUN COUNTY HE SAYS HE THINKS KIDS SHOULD ONLY GO TO COLLEGE IF IT'S NECESSARY FOR THEIR CAREERS HE'S PROUD THAT HIS BEAUTIFUL BLOND DAUGHTER CHRISTY WHO IS NOW 18 HAS NEVER HAD A DATE YOUNG PEOPLE SHOULDN'T DATE HE ARGUES UNTIL THEY ARE MATURE ENOUGH TO CONSIDER MARRIAGE MR FARRIS HIMSELF REGRETS HE HAD GIRLFRIENDS IN SECOND THIRD AND FOURTH GRADES THESE EARLY RELATIONSHIPS WERE NOT HARMLESS HE SAYS IN ONE OF SEVERAL BOOKS HE HAS WRITTEN FROM NOW UNTIL ELECTION DAY DEMOCRATS WILL ATTACK MR FARRIS AS THEIR BEST CHANCE OF WEATHERING THE CLIMATE MS TERRY AND OTHER DEMOCRATS ARGUE THAT MR ALLEN AS SHOWN BY HIS RUNNING MATE IS PART AND PARCEL OF A FUNDAMENTALIST ATTEMPT TO TAKE OVER THE REPUBLICAN PARTY IN VIRGINIA AND ELSEWHERE GEORGE ALLEN MS TERRY SAID THIS WEEK IN THE SECOND TELEVISED GUBERNATORIAL DEBATE IS A STOOGE OF THE RADICAL RIGHT CAMPAIGNING ON THE POLITICS OF HATE IN TRUTH MR ALLEN HASN'T QUITE SORTED OUT HIS RELATIONSHIP WITH MR FARRIS WHO WAS CHOSEN INDEPENDENTLY OF THE GUBERNATORIAL CANDIDATE AT THE STATE GOP CONVENTION MR ALLEN HAS NO JOINT CAMPAIGN EFFORTS WITH MR FARRIS YET HASN'T DISOWNED HIM EITHER WE HAVE A STRONG AND DIVERSE TICKET HE SAYS IT IS TRUE WE DON'T AGREE ON EVERYTHING BUT MARY SUE TERRY IS RUNNING AGAINST GEORGE ALLEN NOT THE CHRISTIAN RIGHT HE SAYS THIS EVEN AS HE'S RUNNING AGAINST PRESIDENT CLINTON AND HIS WIFE AND SEN ROBB AND GOV WILDER MR CLINTON IS HELD UP AS A FIGURE OF RIDICULE AND MS TERRY IS CRITICIZED FOR SIPPING WINE AND MUNCHING CHEESE WITH HILLARY RODHAM CLINTON AT A FUNDRAISER AT WEST VIRGINIA SEN JAY ROCKEFELLER'S MANSION IN WASHINGTON MR ALLEN SAYS HE WAS VISITING REAL VOTERS IN RURAL VIRGINIA THAT SAME NIGHT STOKING UP ON HOT DOGS THEY CAN'T PAINT MARY SUE AS AN ELITIST FOR GOD'S SAKE SAYS TOM KING HER CHIEF STRATEGIST HER PARENTS WERE PIG FARMERS HER PARENTS WERE ALSO SCHOOLTEACHERS IN RURAL PATRICK COUNTY SEN ROBB WHO ALSO SERVED AS GOVERNOR AND GOV WILDER OFFER EVEN MORE INVITING TARGETS THEY ALL HAVE THE MENTALITY OF MONARCHISTS AND TERRY IS THE LATEST IN THE LINE SAYS MR ALLEN EVERYBODY IS SUPPOSED TO GENUFLECT TO HER AS IF IT ALL WERE ORDAINED DEMOCRATS BY ELECTING THREE GOVERNORS IN A ROW HAVE HELD THE GOVERNOR'S MANSION FOR ALMOST 12 YEARS GOVERNORS UNLIKE LIEUTENANT GOVERNORS AND ATTORNEYS GENERAL CAN'T SUCCEED THEMSELVES ALTHOUGH MS TERRY HAS CHALKED UP A NUMBER OF SIGNIFICANT ACCOMPLISHMENTS AS STATE LEGISLATOR AND ATTORNEY GENERAL SHE DOES SOMETIMES SEEM HARD PUT TO COME UP WITH A REASON FOR RUNNING FOR GOVERNOR OTHER THAN TO SUGGEST IT'S HER TURN SHE BEGAN THE CAMPAIGN WITH A BURST OF ENTHUSIASM FOR A VIRGINIA VERSION OF THE BRADY BILL WHICH WOULD IMPOSE A FIVEDAY WAITING PERIOD FOR THE PURCHASE OF HANDGUNS BUT SHE OPPOSED A WAITINGPERIOD BILL AS RECENTLY AS LAST JANUARY AND IN HER TWO SUCCESSFUL CAMPAIGNS FOR ATTORNEY GENERAL SHE WAS ENDORSED BY THE NATIONAL RIFLE ASSOCIATION MR ALLEN ARGUES WITH SOME PLAUSIBILITY THAT HE IS THE CANDIDATE OF CHANGE WHICH IS SOMETHING EVERYONE IN VIRGINIA SEEMS TO BE FOR HE SCORES POINTS BY ATTACKING MS TERRY FOR ACCEPTING A 10000 CAMPAIGN CONTRIBUTION FROM GOLDMAN SACHS & CO AND THEN ISSUING A LEGAL OPINION ALLOWING THE WALL STREET FIRM TO BORROW 25 MILLION FROM THE VIRGINIA RETIREMENT SYSTEM BUT HIS MAJOR ISSUE HAS BEEN A CALL TO ELIMINATE THE STATE'S PAROLE SYSTEM HE CONCEDES THAT MEANS MORE PRISONS BUT HE HASN'T SAID HOW MANY AND ESTIMATES VARY ON WHAT THEY WOULD COST HE HAS PLEDGED NOT TO RAISE TAXES THE FACT IS NEITHER MS TERRY NOR MR ALLEN HAS MANAGED TO IGNITE VERY MUCH VOTER ENTHUSIASM IN WHAT IS TURNING OUT TO BE A VERY CLOSE RACE BY CONTRAST THE LIEUTENANT GOVERNOR RACE HAS JUST ABOUT EVERYBODY TALKING THE OPENING SALVO WAS FIRED LATE LAST WEEK BY MR FARRIS'S OPPONENT INCUMBENT LT GOV DON BEYER 43 VIRGINIA THE BEYER TV SPOT BEGINS MEET MIKE FARRIS IT LINKS HIM TO PAT ROBERTSON AND JERRY FALWELL BOTH VIRGINIABASED LEADERS OF THE CHRISTIAN RIGHT IT ALSO NOTES THAT MR FARRIS OPPOSES ABORTIONS EVEN IN CASES OF RAPE AND INCEST AND THAT HE IS AGAINST LAWS AIMED AT PREVENTING CHILD ABUSE BECAUSE THEY MIGHT INFRINGE ON PARENTS' RIGHTS WHAT HAPPENS THE AD CONCLUDES IF THEIR LIEUTENANT BECOMES YOUR LIEUTENANT GOVERNOR DON BEYER COUNTERS THE PLAINSPOKEN MR FARRIS IS A RELIGIOUS BIGOT HE SAYS IT IS UNFAIR OF HIS OPPONENTS TO CAPITALIZE ON THE PRIVATE ADVICE HE GIVES HIS DAUGHTERS ABOUT DATING EVEN THOUGH HE TALKS ABOUT THAT ADVICE IN HIS BOOK HE EXPLAINS THAT THE REASON HE REGRETS HAVING HAD GIRLFRIENDS IN ELEMENTARY SCHOOL IS THAT IT TEACHES YOUNG PEOPLE THAT RELATIONSHIPS ARE SERIAL THINGS MODERATE REPUBLICANS HAVE BEEN RELUCTANT TO SUPPORT MR FARRIS SEN JOHN WARNER THE STATE'S RANKING REPUBLICAN REFUSES TO SAY HOW HE WILL VOTE COME SEE ME THE DAY BEFORE THE ELECTION HE TELLS REPORTERS VIRGINIA HOLTON WIFE OF LINWOOD HOLTON THE STATE'S FIRST GOP GOVERNOR OF MODERN TIMES LED A GROUP OF REPUBLICANS FOR BEYER ON A FLYAROUND LAST WEEK THE ONLY THING THE EXPERTS CAN BE SURE OF IS THAT MR FARRIS'S CHRISTIAN RIGHT SUPPORTERS WILL SHOW UP ON ELECTION DAY DEMOCRATS WORRY THAT THEIR CORE BLACK VOTE WITH GOV WILDER THE STATE'S FIRST BLACK GOVERNOR MISSING FROM THE TICKET WILL STAY HOME THEY ALSO WORRY ABOUT THE STATE'S 250000 AFLCIO FAMILIES MS TERRY SOUGHT ORGANIZEDLABOR'S SUPPORT SHE DIDN'T GET IT THAT LEAVES MIKE FARRIS AND A DEMOCRATIC CAMPAIGN IN WHICH THE TAIL WAGS THE DOG WE NEED TO GET OUR MESSAGE ABOUT THE LIEUTENANT GOVERNOR'S RACE ACROSS SAYS MANDY GRUNWALD MR BEYER'S MEDIA CONSULTANT WE WANT PEOPLE WHO FIND HIS VIEWS SCARY TO SHOW UP 9310150119 931015 CHEMICAL FIRM JOBS IN WESTERN GERMANY SEEN DROPPING IN '94 SPECIAL TO THE WALL STREET JOURNAL BADENBADEN GERMANY CALLING 1993 ONE OF THE WESTERN GERMAN CHEMICAL SECTOR'S WORST POSTWAR YEARS THE PRESIDENT OF THE INDUSTRY'S ASSOCIATION SAID THAT JOB CUTS PROBABLY WILL CONTINUE INTO 1994 EVEN IF OUTPUT RECOVERS A LITTLE IN 1994 SALES AND EARNINGS STILL WILL BE UNSATISFACTORY WOLFGANG HILGER PRESIDENT OF THE CHEMICAL INDUSTRY ASSOCIATION TOLD A MEMBERSHIP MEETING HERE SALES FOR WESTERN GERMANY'S CHEMICAL INDUSTRY WERE 1174 BILLION MARKS 733 BILLION IN THE FIRST THREE QUARTERS OF 1993 A 7 DECLINE FROM A YEAR AGO MR HILGER SAID DOMESTIC SALES WERE DOWN 8 AND EXPORTS DOWN ABOUT 6 HE ADDED LOWER SALES AND CONTINUED PRICE PRESSURE HAVE PUSHED EARNING DOWN ABOUT 30 HE ASSERTED MR HILGER SAID THE NUMBER OF WORKERS IN THE INDUSTRY DROPPED TO 556000 BY JULY A REDUCTION OF ABOUT 31000 JOBS IN THE 12 MONTHS LEADING TO JULY ALTHOUGH HE SAID THE CUTS PROBABLY WILL CONTINUE INTO 1994 NO SPECIFIC FORECAST WAS AVAILABLE HE SAID NO DOMESTIC GROWTH IS EXPECTED IMMEDIATELY BUT THE INDUSTRY HOPES EXPORTS COULD INCREASE AS FOREIGN MARKETS GROW 9310150118 931015 JURY CONVICTS HUSBAND OF KENTUCKY EXGOVERNOR FRANKFORT KY AP THE HUSBAND OF FORMER GOV MARTHA LAYNE COLLINS WAS CONVICTED BY A FEDERAL COURT JURY OF EXTORTING MONEY FROM STATE CONTRACTORS AND DISGUISING KICKBACKS AS POLITICAL CONTRIBUTIONS PROSECUTORS SAID BILL COLLINS EXPLOITED A PERCEPTION THAT HE COULD INFLUENCE CONTRACTING FOR BOND ISSUES AND PROFESSIONAL SERVICES DURING HIS WIFE'S FOUR YEARS IN OFFICE MR COLLINS COULD BE SENTENCED TO AS MANY AS 25 YEARS IN PRISON AND A 500000 FINE SENTENCING WAS SET FOR DEC 21 MR COLLINS A FORMER DENTIST HAD BEEN UNDER INVESTIGATION SINCE HIS WIFE LEFT OFFICE IN DECEMBER 1987 THE INVESTIGATION LED TO AN INDICTMENT IN JULY 1992 CHARGING THAT HE STEERED CONTRACTS TO COMPANIES WHOSE EXECUTIVES INVESTED IN HIS BUSINESS PARTNERSHIPS THE BIGGEST BOND ISSUES TOTALING 17 BILLION WENT TO TWO FIRMS WHOSE EXECUTIVES AGREED TO INVEST 17 MILLION WITH MR COLLINS'S PARTNERSHIPS IN THOROUGHBRED HORSES THE FIRMS WERE DONALDSON LUFKIN & JENRETTE OF NEW YORK AND CRANSTON SECURITIES CO OF COLUMBUS OHIO SEVERAL TOP EXECUTIVES OF BOTH FIRMS WERE WITNESSES IN THE TRIAL MR COLLINS TESTIFIED THAT THERE WAS NO CONNECTION BETWEEN HIS BUSINESS AND THE AWARDING OF STATE CONTRACTS DEFENSE ATTORNEY FRANK E HADDAD SAID MR COLLINS WOULD APPEAL THE CONVICTIONS ON GROUNDS OF INSUFFICIENT EVIDENCE 9310150117 931015 WHO'S NEWS HAGIWARA TO RETIRE AS CHAIRMAN OF UNIT OF JAPAN'S NKK CORP MISHAWAKA IND KOKICHI HAGIWARA WILL RETIRE AS CHAIRMAN OF NATIONAL STEEL CORP EFFECTIVE JAN 1 MR HAGIWARA 69 YEARS OLD WILL BE SUCCEEDED BY OSAMU SAWARAGI 65 WHO IS NOW VICE CHAIRMAN OF THE COMPANY AS WELL AS EXECUTIVE VICE PRESIDENTSTEEL DIVISIONS OF JAPAN'S NKK CORP THE STEELMAKER'S PARENT THE COMPANY SAID IT WON'T APPOINT A NEW VICE CHAIRMAN RONALD H DOERR 53 CURRENTLY PRESIDENT AND CHIEF OPERATING OFFICER WAS NAMED CHIEF EXECUTIVE EFFECTIVE IMMEDIATELY SUCCEEDING MR HAGIWARA MR DOERR WILL CONTINUE AS PRESIDENT JAMES N HOWELL 52 FORMERLY VICE PRESIDENT OF MANUFACTURING SUCCEEDS MR DOERR AS CHIEF OPERATING OFFICER AND WAS NAMED TO THE NEW POST OF SENIOR VICE PRESIDENT ALSO YOSHITO TOKUMITSU 57 FORMERLY VICE PRESIDENT AND ASSISTANT TO THE CHAIRMAN WAS NAMED SENIOR VICE PRESIDENT AND ASSISTANT TO THE CHIEF EXECUTIVE DAVID A CHATFIELD 54 FORMERLY VICE PRESIDENTENGINEERING AND DIVERSIFIED BUSINESSES WAS NAMED VICE PRESIDENT AND GENERAL MANAGER OF THE COMPANY'S GREAT LAKES DIVISION HE SUCCEEDS CHARLES DECARIA 43 WHO LEFT THE COMPANY TO PURSUE OTHER INTERESTS 9310150116 931015 CHRYSLER POSTS DOUBLED PROFIT FOR 3RD QUARTER STOCK CLIMBS 67 ANALYSTS ARE IMPRESSED AS SHARES OF FORD GM RISE TOO BY DOUGLAS LAVIN STAFF REPORTER OF THE WALL STREET JOURNAL HIGHLAND PARK MICH CHRYSLER CORP REPORTED ITS BEST THIRDQUARTER EARNINGS EVER SURPRISING ANALYSTS SENDING ITS STOCK UP 67 TO A 52WEEK HIGH AND HELPING LIFT THE STOCKS OF FORD MOTOR CO AND GENERAL MOTORS CORP CHRYSLER HAD NET INCOME OF 423 MILLION OR 113 A SHARE MORE THAN DOUBLE LAST YEAR'S THIRDQUARTER NET OF 202 MILLION OR 62 CENTS A SHARE REVENUE ROSE 54 TO 971 BILLION FROM 922 BILLION THE EARNINGS WHICH WERE STRONG EVEN BEFORE 109 MILLION IN ONETIME GAINS WILL MAKE A DIVIDEND INCREASE LIKELY BEFORE YEAR END ANALYSTS SAID THE COMPANY HAS TOLD ANALYSTS IT IS TRYING TO DO THAT THE STRONG EARNINGS HAD ANALYSTS SOUNDING LIKE MOVIE REVIEWERS IT'S MINDBOGGLING SAID WENDY BEALE NEEDHAM AN ANALYST WITH SMITH BARNEY SHEARSON IT'S SPECTACULAR SAID JOSEPH PHILLIPPI AT LEHMAN BROS THE ANALYSTS SAID THAT ON AN OPERATING BASIS CHRYSLER EARNED 87 CENTS A SHARE FAR MORE THAN THEIR CONSENSUS ESTIMATE OF 58 CENTS A SHARE AS A RESULT SOME PREDICTED THAT CHRYSLER SHARES WHICH WERE TRADING AT 1150 EACH EARLY LAST YEAR COULD GO AS HIGH AS 75 A SHARE IN HEAVY COMPOSITE NEW YORK STOCK EXCHANGE TRADING YESTERDAY CHRYSLER SHARES ROSE 325 TO CLOSE AT 5175 CHRYSLER'S STRONG PERFORMANCE IS ALL THE MORE STRIKING BECAUSE ANNUAL MODEL CHANGEOVERS TYPICALLY DRAG DOWN THIRDQUARTER RESULTS GM WHICH WAS PLAGUED BY PRODUCTION GLITCHES DURING THE MODEL CHANGEOVER IS EXPECTED TO ANNOUNCE LATER THIS MONTH A NET LOSS OF 400 MILLION TO 600 MILLION AND ESTIMATES FOR FORD RANGE FROM A LOSS OF 125 MILLION TO A PROFIT OF 158 MILLION THEIR SHARES NEVERTHELESS ROSE YESTERDAY WITH FORD COMMON STOCK INCREASING 225 A SHARE OR 41 TO CLOSE AT 5750 AND GM COMMON INCREASING 1125 OR 26 TO CLOSE AT 4475 A SHARE BOTH IN BIG BOARD TRADING MEANWHILE THERE WAS PROGRESS YESTERDAY IN CONTRACT TALKS BETWEEN GM AND THE UNITED AUTO WORKERS UNION BUT IT WASN'T CLEAR HOW QUICKLY A DEAL COULD BE WRAPPED UP THE NEW GM CONTRACT IS LIKELY TO MAKE IT EASIER FOR THE COMPANY TO TRANSFER LAIDOFF WORKERS AND FORCE WORKERS TO TAKE VACATIONS DURING A TWOWEEK COMPANYWIDE SHUTDOWN UNION OFFICIALS SAID BUT GM OFFICIALS CONTINUED TO BALK AT ACCEPTING THE UAW'S DEMAND FOR PENSION INCREASES THE UAW HADN'T SET A STRIKE DEADLINE AS OF LATE YESTERDAY AND TALKS WERE SLOWED AS UAW OFFICIALS TRIED TO RESOLVE A LASTMINUTE HITCH IN THEIR NEW CONTRACT WITH FORD GM PRESIDENT JOHN F SMITH JR MEANWHILE FLEW TO MEXICO CITY YESTERDAY TO DELIVER A SPEECH IN SUPPORT OF THE NORTH AMERICAN FREE TRADE AGREEMENT WHICH THE UAW OPPOSES AT CHRYSLER CHAIRMAN ROBERT J EATON SAID DESPITE SIGNIFICANT DOWNTIME IN SOME OF OUR PLANTS FOR PRODUCT CHANGEOVER AND NEW PRODUCT LAUNCHES THIRDQUARTER 1993 WAS CHRYSLER'S HIGHEST THIRD QUARTER EVER FOR PRETAX OPERATING EARNINGS THE PERIOD WAS ALSO THE COMPANY'S BEST THIRD QUARTER ON THE BOTTOM LINE BUT DESPITE THE LAUNCH OF TWO NEW VEHICLES THE DODGE RAM PICKUP AND THE NEON COMPACT CAR CHRYSLER SPENT ONLY 83 MILLION ON PRODUCT LAUNCHES IN THE QUARTER 38 MILLION MORE THAN LAST YEAR IN ADDITION TO HOLDING DOWN COSTS CHRYSLER SOLD MOREPROFITABLE VEHICLES WE HAD A MUCH STRONGER MIX OF PRODUCTS SAID GARY VALADE CHRYSLER'S CHIEF FINANCIAL OFFICER EXCLUDING SPECIAL GAINS AND CHARGES THE COMPANY MADE AN AVERAGE PROFIT OF 608 PER VEHICLE IN THE QUARTER UP FROM 537 LAST YEAR THE HIGHER PROFITS CAME FROM A REDUCTION IN FLEET SALES TO 12 OF TOTAL SALES FROM 17 A YEAR EARLIER AND A DECLINE IN SALES INCENTIVES TO AN AVERAGE OF 775 PER VEHICLE FROM 1100 A YEAR AGO AND 1250 TWO YEARS AGO FLEET SALES OR WHOLESALE SALES TO RENTALCAR AGENCIES AND OTHER LARGE COMPANIES PRODUCE LOWER PROFITS THAN RETAIL SALES THE MIX ALSO WAS ENRICHED BY HIGHER VOLUMES OF PROFITABLE NEW PRODUCTS SUCH AS THE CHRYSLER CONCORDE AND THE JEEP GRAND CHEROKEE THE AUTO MAKER REDUCED INCENTIVES EVEN WHILE IT CLEARED ITS INVENTORY OF OUTOFDATE MODELS SUCH AS THE DODGE DYNASTY MR VALADE SAID CHRYSLER'S EARNINGS INCLUDED A NET GAIN OF 58 MILLION FROM THE SALE OF ITS REMAINING 233 MILLION SHARES OF MITSUBISHI MOTORS CORP STOCK A COMPANY IN WHICH CHRYSLER ONCE HAD EXTENSIVE HOLDINGS RESULTS ALSO INCLUDED A FAVORABLE INCOMETAX ADJUSTMENT OF 51 MILLION ON A PRETAX OPERATING BASIS THE COMPANY REPORTED 518 MILLION OF PROFIT COMPARED WITH 460 MILLION LAST YEAR RETAIL SALES WERE UP ALMOST 14 OVER LAST YEAR AS THE COMPANY AND DEALERS REDUCED INVENTORY BUT BECAUSE OF MODEL CHANGEOVER FACTORY SALES FELL TO 516073 VEHICLES FROM 523516 LAST YEAR IN THE FIRST NINE MONTHS CHRYSLER REPORTED A NET LOSS OF 305 BILLION OR 907 A SHARE BECAUSE OF A ONETIME CHARGE OF 47 BILLION FOR A CHANGE IN ACCOUNTING FOR RETIREE HEALTH CARE IN THE FIRST NINE MONTHS OF 1992 CHRYSLER EARNED 367 MILLION OR 108 A SHARE REVENUE ROSE 18 TO 3165 BILLION FROM 2672 BILLION EARLIER THIS MONTH CHRYSLER REGAINED ITS INVESTMENTGRADE CREDIT RATING WHICH IS LETTING IT REDUCE DEBTSERVICE COSTS BUT THE COMPANY STILL MUST GRAPPLE WITH AN UNFUNDED PENSION LIABILITY OF MORE THAN 2 BILLION 9310150114 931015 ITT MEMO INDICATES JOB CUTS TO BE STEEPER THAN FIRM EXPECTED NEW YORK AN INTERNAL MEMO SENT TO ITT CORP TOP EXECUTIVES INDICATED THAT A RECENT MCKINSEY & CO ANALYSIS OF CORPORATE OPERATIONS WILL RESULT IN STEEPER JOB CUTS THAN HAD BEEN EXPECTED THE ACTION WHICH WILL ELIMINATE 1100 OF 4100 JOBS AT THE WORLD AND DIVISION HEADQUARTERS OFFICES WILL ALSO SAVE ABOUT 147 MILLION OR 81 CENTS A SHARE NEXT YEAR THE MEMO SAID A SPOKESMAN FOR ITT CONFIRMED THE MEMO WHICH RAND ARASKOG CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE SENT TO THE STAFF WEDNESDAY THE CUTBACKS AND PROJECTED SAVINGS EXCEEDED ESTIMATES RELEASED BY ITT IN JULY AT THAT TIME THE COMPANY SAID THE MCKINSEY ANALYSIS PROBABLY WOULD RESULT IN HUNDREDS OF LAYOFFS AND CREATE ANNUAL SAVINGS OF ABOUT 90 MILLION IN 1992 ITT WHICH HAS INTERESTS IN FINANCIAL SERVICES INSURANCE DEFENSE HOTELS AUTOMOTIVE AND TIMBER PRODUCTS REPORTED A LOSS OF 885 MILLION OR 576 A SHARE ON REVENUE OF 217 MILLION THE LOSS INCLUDED MORE THAN 136 BILLION IN CHARGES I REALIZE THIS PROCESS HAS BEEN VERY TAXING ON EVERYONE AT HEADQUARTERS MR ARASKOG WROTE IN THE MEMO AS ACTIVITIES WERE EXAMINED MANY DEDICATED AND HARDWORKING EMPLOYEES HAVE BEEN ADVISED THAT THEIR POSITIONS HAVE BEEN ELIMINATED MR ARASKOG'S NOTE ADDED THAT THE COMPANY IS MAKING EFFORTS TO FIND JOBS FOR DISPLACED EMPLOYEES THROUGHOUT THE COMPANY AT THE COMPANY'S WORLD HEADQUARTERS ALONE 100 OF 474 POSITIONS WERE ELIMINATED 9310150113 931015 PHILIPS ELECTRONICS TO CLOSE SPAIN PLANT SLASH 450 MORE JOBS SPECIAL TO THE WALL STREET JOURNAL AMSTERDAM PHILIPS ELECTRONICS NV SAID IT WILL CLOSE A PLANT IN SPAIN AMONG OTHER MEASURES THAT WILL SLASH 450 MORE OF THE COMPANY'S JOBS IN EUROPE THE JOB LOSSES AT THE SPANISH PLANT COME AFTER PHILIPS HAS ALREADY SLASHED SOME 170 JOBS THERE SINCE JULY THE CUTBACKS THERE AS WELL AS IN PHILIPS'S WORLDWIDE OPERATIONS ARE MEANT TO BRING THE DUTCH COMPANY'S CONSUMERELECTRONICS DIVISION BACK TO PROFIT BY MID1994 A SPOKESWOMAN SAID THE JOB CUTS WILL BE AT PHILIPS' EUROPEAN TELEVISIONMANUFACTURING ACTIVITIES AMONG THE MEASURES ARE THE DISPOSAL OF THE TELEVISION FACTORY IN BARCELONA WHICH EMPLOYS ABOUT 350 PEOPLE THE PLANT WILL BE EITHER CLOSED DOWN OR SOLD TO ONE OF PHILIPS'S SPANISH PARTNERS THE SPOKESWOMAN SAID AN ADDITIONAL 100 JOBS WILL BE LOST AT THE ITALIAN TELEVISION PLANT IN MONZA WHICH CURRENTLY EMPLOYS 1000 PEOPLE AFTER THE DISPOSAL OF THE BARCELONA PLANT PHILIPS WILL HAVE THREE EUROPEAN TELEVISIONMANUFACTURING PLANTS LEFT IN MONZA BRUGGE BELGIUM AND DREUX FRANCE THIS EXCLUDES THE FACILITIES OF PHILIPS'S GERMAN SUBSIDIARY GRUNDIG AG WHICH ALSO MAKES TELEVISIONS AND WHICH WAS FULLY CONSOLIDATED FOR THE FIRST TIME IN PHILIPS'S BALANCE SHEETS EARLIER THIS YEAR INCLUDING GRUNDIG PHILIPS'S CONSUMERELECTRONICS DIVISION EMPLOYED MORE THAN 55000 PEOPLE WORLDWIDE AT THE BEGINNING OF THE YEAR THE SPOKESWOMAN SAID THE ELECTRONICS GIANT'S TOTAL WORK FORCE WAS 254000 PEOPLE AT THE END OF JUNE CONSUMER ELECTRONICS ACCOUNTS FOR HALF OF THE GROUP'S ANNUAL SALES OF ABOUT 58 BILLION GUILDERS 3218 BILLION 9310150112 931015 MONEY RATES THE KEY US AND FOREIGN ANNUAL INTEREST RATES BELOW ARE A GUIDE TO GENERAL LEVELS BUT DON'T ALWAYS REPRESENT ACTUAL TRANSACTIONS PRIME RATE 6 THE BASE RATE ON CORPORATE LOANS POSTED BY AT LEAST 75 OF THE NATION'S 30 LARGEST BANKS FEDERAL FUNDS 3 HIGH 2 15/16 LOW 2 15/16 NEAR CLOSING BID 3 OFFERED RESERVES TRADED AMONG COMMERCIAL BANKS FOR OVERNIGHT USE IN AMOUNTS OF 1 MILLION OR MORE SOURCE PREBON YAMANE USA INC DISCOUNT RATE 3 THE CHARGE ON LOANS TO DEPOSITORY INSTITUTIONS BY THE FEDERAL RESERVE BANKS CALL MONEY 5 THE CHARGE ON LOANS TO BROKERS ON STOCK EXCHANGE COLLATERAL SOURCE TELERATE SYSTEMS INC COMMERCIAL PAPER PLACED DIRECTLY BY GENERAL ELECTRIC CAPITAL CORP 309 30 TO 89 DAYS 320 90 TO 239 DAYS 325 240 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS 314 30 DAYS 314 60 DAYS 325 90 DAYS CERTIFICATES OF DEPOSIT 253 ONE MONTH 258 TWO MONTHS 263 THREE MONTHS 273 SIX MONTHS 287 ONE YEAR AVERAGE OF TOP RATES PAID BY MAJOR NEW YORK BANKS ON PRIMARY NEW ISSUES OF NEGOTIABLE CDS USUALLY ON AMOUNTS OF 1 MILLION AND MORE THE MINIMUM UNIT IS 100000 TYPICAL RATES IN THE SECONDARY MARKET 310 ONE MONTH 320 THREE MONTHS 325 SIX MONTHS BANKERS ACCEPTANCES 303 30 DAYS 303 60 DAYS 312 90 DAYS 312 120 DAYS 312 150 DAYS 312 180 DAYS OFFERED RATES OF NEGOTIABLE BANKBACKED BUSINESS CREDIT INSTRUMENTS TYPICALLY FINANCING AN IMPORT ORDER LONDON LATE EURODOLLARS 3 3/16 3 1/16 ONE MONTH 3 3/16 3 1/16 TWO MONTHS 3 3/8 3 1/4 THREE MONTHS 3 3/8 3 1/4 FOUR MONTHS 3 3/8 3 1/4 FIVE MONTHS 3 3/8 3 1/4 SIX MONTHS LONDON INTERBANK OFFERED RATES LIBOR 3 3/16 ONE MONTH 3 3/8 THREE MONTHS 3 3/8 SIX MONTHS 3 1/2 ONE YEAR THE AVERAGE OF INTERBANK OFFERED RATES FOR DOLLAR DEPOSITS IN THE LONDON MARKET BASED ON QUOTATIONS AT FIVE MAJOR BANKS EFFECTIVE RATE FOR CONTRACTS ENTERED INTO TWO DAYS FROM DATE APPEARING AT TOP OF THIS COLUMN FOREIGN PRIME RATES CANADA 575 GERMANY 656 JAPAN 3375 SWITZERLAND 750 BRITAIN 6 THESE RATE INDICATIONS AREN'T DIRECTLY COMPARABLE LENDING PRACTICES VARY WIDELY BY LOCATION TREASURY BILLS RESULTS OF THE TUESDAY OCTOBER 121993 AUCTION OF SHORTTERM US GOVERNMENT BILLS SOLD AT A DISCOUNT FROM FACE VALUE IN UNITS OF 10000 TO 1 MILLION 304 13 WEEKS 312 26 WEEKS FEDERAL HOME LOAN MORTGAGE CORP FREDDIE MAC POSTED YIELDS ON 30YEAR MORTGAGE COMMITMENTS DELIVERY WITHIN 30 DAYS 655 60 DAYS 663 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 3625 2 RATE CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE TELERATE SYSTEMS INC FEDERAL NATIONAL MORTGAGE ASSOCIATION FANNIE MAE POSTED YIELDS ON 30YEAR MORTGAGE COMMITMENTS PRICED AT PAR FOR DELIVERY WITHIN 30 DAYS 653 60 DAYS 663 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 480 6/2 RATE CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE TELERATE SYSTEMS INC MERRILL LYNCH READY ASSETS TRUST 269 ANNUALIZED AVERAGE RATE OF RETURN AFTER EXPENSES FOR THE PAST 30 DAYS NOT A FORECAST OF FUTURE RETURNS 9310150111 931015 STRUTHERS BUYS LIBERAL HULL CO TULSA OKLA STRUTHERS INDUSTRIES INC SAID IT HAS ACQUIRED LIBERAL HULL CO OF LIBERAL KAN TERMS WERE NOT DISCLOSED STRUTHERS SAID LIBERAL HULL A SUPPLIER OF DRILLING FLUID ADDITIVES HAD SALES OF 11 MILLION TO 13 MILLION A YEAR FOR THE PAST FIVE YEARS 9310150110 931015 VENTURE OF RALSTON INTRAWEST TO DEVELOP LAND NEAR SKI RESORT DENVER RALSTONRALSTON PURINA GROUP AND INTRAWEST CORP OF VANCOUVER BRITISH COLUMBIA SAID THEY FORMED A JOINT VENTURE TO DEVELOP ABOUT 250 ACRES OF OPEN LAND AT THE BASE OF KEYSTONE SKI RESORT'S GONDOLA ABOUT 75 MILES WEST OF DENVER THE TWO COMPANIES DECLINED TO SAY HOW MUCH EACH WOULD OWN OF THE JOINT VENTURE OR WHAT VALUE THEY PUT ON THE ASSETS THAT WILL BE CONTRIBUTED TO THE PROJECT AN INTRAWEST SPOKESMAN SAID KEYSTONE WHICH IS OWNED BY RALSTON WILL PROVIDE THE REAL ESTATE TO THE VENTURE AND INTRAWEST WILL CONTRIBUTE ITS DEVELOPMENT EXPERTISE INTRAWEST WHICH DESCRIBES ITSELF AS A 50 REALESTATE AND 50 RESORT COMPANY WOULDN'T SAY HOW MUCH IT EXPECTS TO SPEND TO BUILD RESTAURANTS RETAIL OUTLETS CONDOS AND HOTELS BUT AS A POINT OF REFERENCE THE COMPANY SAID IT SPENT 500 MILLION TO DEVELOP ITS SKIER VILLAGE AT WHISTLERBLACKCOMB SKI RESORT IN BRITISH COLUMBIA AND 413 MILLION IN THE PAST TWO YEARS TO DEVELOP A PEDESTRIAN VILLAGE AT MONT TREMBLANT IN QUEBEC A MONTH AGO RALSTON'S BOARD APPROVED A SPINOFF OF THE KEYSTONE AND BRECKENRIDGE RESORTS RAISING QUESTIONS ABOUT LONGTERM PLANS FOR THE RESORTS AT A PRESS CONFERENCE KEYSTONE'S CHIEF EXECUTIVE JOE MICHELETTO SAID RALSTON HAS NO INTENTIONS OF SELLING KEYSTONE 9310150109 931015 NATIONAL WESTMINSTER SAYS NET AT US UNIT ROSE 82 IN 3RD PERIOD SPECIAL TO THE WALL STREET JOURNAL LONDON NATIONAL WESTMINSTER BANCORP INC SAID THIRDQUARTER NET INCOME LEAPED 82 TO 715 MILLION FROM 393 MILLION A YEAR EARLIER NATWEST BANCORP THE US UNIT OF NATIONAL WESTMINSTER BANK PLC OF BRITAIN SAID THE PROFIT BOOM REFLECTED A SHARP DROP IN PROVISIONS FOR LOAN LOSSES TO 20 MILLION FROM 305 MILLION IT ADDED THAT ITS RETURN ON AVERAGE EQUITY SHOT UP TO 1409 FOR THE THREEMONTH PERIOD ENDED SEPT 30 FROM 872 A YEAR EARLIER FOR THE NINEMONTH PERIOD RETURN ON EQUITY WAS 1385 COMPARED WITH 799 FOR THE 1992 PERIOD THE MAJOR STEPS WE TOOK TO IMPROVE ASSET QUALITY THROUGH THE SALE OF REALESTATE ASSETS ALONG WITH THE INDIVIDUAL SALE OF SEVERAL OTHER PROBLEM CREDITS HAVE SUBSTANTIALLY STRENGTHENED OUR FINANCIAL BASE FOR THE FUTURE JOHN TUGWELL CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID NATWEST BANCORP'S THIRDQUARTER PROFIT INCLUDES A 17 MILLION TAX BENEFIT BRINGING ITS NINEMONTH TAX GAINS TO 41 MILLION NINEMONTH PROFIT ROSE 92 TO 202 MILLION 9310150108 931015 JAPAN'S SEIBU GROUP WILL SET UP SHOP IN SHENZHEN CHINA HONG KONG SEIBU GROUP A MAJOR JAPANESE RETAILER WILL OPEN A STORE IN SHENZHEN CHINA ON OCT 28 MASASHI ISHIKAWA MANAGING DIRECTOR OF THE STORE SAID THE OPENING REFLECTS SEIBU'S CONFIDENCE IN THE CHINESE MARKET'S POTENTIAL I BELIEVE THAT OUR STORE WILL RAISE SHOPPING IN CHINA TO A NEW HEIGHT AND LEAD THE WAY IN SETTING RETAIL TRENDS HE SAID SHENZHEN SEIBU WITH ABOUT 48600 SQUARE FEET OF SPACE WILL TARGET NEWLY AFFLUENT CHINESE CONSUMERS EXPATRIATES AND FOREIGN TOURISTS PRODUCT CATEGORIES WILL INCLUDE MEN'S AND WOMEN'S APPAREL CHILDREN'S WEAR AND ACCESSORIES COSMETICS JEWELRY WATCHES AND GIFTS LEADING INTERNATIONAL BRANDS INCLUDING DKNY ESCADA GIANNI VERSACE SALVATORE FERRAGAMO CERRUTI AND GIEVES & HAWKES WILL ALSO BE FEATURED SHENZHEN SEIBU IS A JOINT VENTURE BETWEEN HONG KONG SEIBU INVESTMENT CO AND SHENZHEN'S DUTYFREE COMMODITY ENTERPRISE CO HONG KONG SEIBU OWNS 55 AND DUTYFREE OWNS 45 OF THE NEW COMPANY CALLED SHENZHEN SEIBU DEPARTMENT STORE CO HONG KONG SEIBU IS A PARTNERSHIP BETWEEN HONG KONG SEIBU ENTERPRISE CO A UNIT OF THE TOKYOBASED SAISON GROUP AND PACIFIC ETON LTD A HONG KONG TRADING COMPANY SEIBU OPENED ITS FIRST STORE OUTSIDE JAPAN IN HONG KONG IN OCTOBER 1990 9310150107 931015 MARKETING & MEDIA MCDONALD'S CORP SIGNS UP AS 1996 OLYMPICS SPONSOR ATLANTA MCDONALD'S CORP SAID IT AGREED TO BECOME A SPONSOR OF THE 1996 OLYMPIC GAMES HERE BRINGING TO SIX THE NUMBER OF FULL CORPORATE SPONSORSHIPS SECURED BY THE ATLANTA COMMITTEE FOR THE OLYMPIC GAMES THE FASTFOOD CONCERN DIDN'T DISCLOSE THE TERMS OF THE AGREEMENT BUT THE ATLANTA COMMITTEE HAS SET THE PRICE OF FULL SPONSORSHIPS AT 40 MILLION IN RETURN MCDONALD'S WILL BE ALLOWED TO USE A VARIETY OF OLYMPIC LOGOS IN ITS ADVERTISING AND PROMOTION THE OTHER ATLANTA SPONSORS ARE NATIONSBANK CORP HOME DEPOT INC SARA LEE CORP INTERNATIONAL BUSINESS MACHINES CORP AND ANHEUSERBUSCH COS IN ADDITION JOHN HANCOCK MUTUAL LIFE INSURANCE CO HAS AGREED TO BUY A PORTION OF THE INSURANCE SPONSORSHIP CATEGORY THE ATLANTA COMMITTEE IS SEEKING 10 FULL SPONSORS FOR THE 1996 GAMES SIGNED SPONSORSHIP DEALS NBC'S TELEVISION RIGHTS AND OTHER MARKETING AGREEMENTS NOW ACCOUNT FOR MORE THAN 700 MILLION IN REVENUE FOR THE ATLANTA COMMITTEE ATLANTA ORGANIZERS ESTIMATE THE TOTAL COST OF STAGING THE OLYMPICS AT 159 BILLION THE CORPORATE SPONSORSHIP PACKAGES HAVE SOLD SLOWLY A PROBLEM THE ATLANTA COMMITTEE ATTRIBUTES TO THE 40 MILLION PRICE THE HIGHEST EVER FOR OLYMPIC CORPORATE SPONSORSHIPS 9310150106 931015 GEORGIAPACIFIC DEFICIT NARROWED IN THIRD QUARTER BY CHARLES MCCOY AND ANITA SHARPE STAFF REPORTERS OF THE WALL STREET JOURNAL ATLANTA GEORGIAPACIFIC CORP AFTER A SERIES OF ONETIME ADJUSTMENTS TO EARNINGS REPORTED A THIRDQUARTER NET LOSS OF 36 MILLION OR 42 CENTS A SHARE A YEAR AGO THE FORESTPRODUCTS CONCERN REPORTED A NET LOSS OF 174 MILLION OR 201 A SHARE THE MOST RECENT QUARTER INCLUDED ADJUSTMENTS FOR TAXLAW CHANGES ASSET SALES AND EARLY RETIREMENT OF DEBT ALL OF WHICH REDUCED EARNINGS BY 43 MILLION EXCLUDING THE UNUSUAL ITEMS GEORGIAPACIFIC SAID IT EARNED 7 MILLION OR EIGHT CENTS A SHARE REVENUE SLIPPED 26 TO 298 BILLION FROM 306 BILLION WHILE THE RESULTS SLIGHTLY EXCEEDED MOST ANALYSTS' EXPECTATIONS GEORGIAPACIFIC'S STOCK ENDED THE DAY AT 59125 A SHARE OFF 1375 IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE SEVERAL MORE BIG FORESTPRODUCTS COMPANIES ANNOUNCED MIXED RESULTS AS WEAK PULP AND PAPER MARKETS CONTINUE TO STING DESPITE RELATIVELY STRONG PRICES FOR LOGS AND LUMBER POTLATCH CORP SAN FRANCISCO REPORTED A LOSS OF 22 MILLION OR SEVEN CENTS A SHARE COMPARED WITH YEAREARLIER NET INCOME OF 178 MILLION OR 61 CENTS A SHARE THE LATEST QUARTER INCLUDES CHARGES TOTALING 13 CENTS A SHARE RELATED TO A CHANGE IN TAX RATES SALES FELL TO 3382 MILLION FROM 3401 MILLION ANALYSTS GENERALLY HAD EXPECTED POTLATCH TO BE PROFITABLE ACCORDING TO ZACKS INVESTMENT RESEARCH INC BUT POTLATCH'S PULP AND PAPERBOARD AND CONSUMER PRODUCTS GROUPS HAD A COMBINED NET LOSS OF 118 MILLION IN THE QUARTER COMPARED WITH YEAREARLIER EARNINGS OF 61 MILLION PROFITS FROM ITS OTHER OPERATIONS WERE CRIMPED BECAUSE LOG AND LUMBER PRICES THOUGH STILL HIGHER THAN YEAREARLIER LEVELS HAVE SLIPPED FROM NEARRECORD HIGHS IN RECENT MONTHS IN THE FIRST NINE MONTHS POTLATCH HAD A NET LOSS OF 9 MILLION OR 31 CENTS A SHARE INCLUDING A 755 MILLION CHARGE RELATED TO A CHANGE IN ACCOUNTING METHODS AND A 438 MILLION GAIN RELATED TO TAX CHANGES SALES EDGED UP TO 103 BILLION FROM 1 BILLION A YEAR AGO IN THE YEAREARLIER NINE MONTHS POTLATCH EARNED 684 MILLION OR 235 A SHARE POTLATCH SAID IT DOESN'T EXPECT MUCH CHANGE IN CURRENT MARKET CONDITIONS FOR THE FOURTH QUARTER BOISE CASCADE CORP BOISE IDAHO REPORTED A LOSS OF 242 MILLION OR 91 CENTS A SHARE INCLUDING A CHARGE OF 71 MILLION FROM A TAXRATE CHANGE AND A GAIN OF 53 MILLION FROM ASSET SALES IN THE YEAREARLIER QUARTER THE COMPANY HAD A LOSS OF 357 MILLION OR 113 A SHARE SALES ROSE 7 TO 1 BILLION THE LOSS WAS ROUGHLY IN LINE WITH ANALYSTS EXPECTATIONS THE COMPANY SAID ITS PAPER AND PAPER PRODUCTS LOSSES NARROWED PARTLY BECAUSE OF REDUCED COSTS IN THE FIRST NINE MONTHS BOISE CASCADE HAD A NET LOSS OF 535 MILLION OR 219 A SHARE INCLUDING THE THIRDQUARTER CHARGES AND GAINS A YEAR EARLIER IT HAD A LOSS OF 1979 MILLION OR 576 A SHARE INCLUDING A 735 MILLION CHARGE FOR AN ACCOUNTING CHANGE SALES ROSE 5 TO 296 BILLION FROM 281 BILLION POPE & TALBOT INC PORTLAND ORE WHICH FOCUSES MORE ON LOGS AND LUMBER THAN MANY OF ITS COMPETITORS REPORTED NET OF 13 MILLION OR 11 CENTS A SHARE ON REVENUE OF 1509 MILLION POPE & TALBOT ANNOUNCED LATE LAST MONTH THAT EARNINGS WOULD BE WELL BELOW ANALYSTS' PROJECTIONS BECAUSE OF WEAK PAPER PRICES AND DECLINING LOG AND LUMBER PRICES AT THE TIME ANALYSTS WERE EXPECTING THE COMPANY TO EARN BETWEEN 20 CENTS AND 34 CENTS A SHARE A YEAREARLIER POPE & TALBOT HAD A LOSS OF 907000 OR EIGHT CENTS A SHARE ON REVENUE OF 1436 MILLION IN THE FIRST NINE MONTHS IT EARNED 165 MILLION OR 141 A SHARE INCLUDING A 562000 GAIN FROM AN ACCOUNTING CHANGE IN THE YEAREARLIER PERIOD IT HAD A LOSS OF 51 MILLION OR 44 CENTS A SHARE REVENUE ROSE 17 TO 4697 MILLION FROM 4005 MILLION IN NEW YORK STOCK EXCHANGE TRADING YESTERDAY POTLATCH CLOSED AT 40125 DOWN 875 CENTS BOISE CASCADE CLOSED AT 2050 UNCHANGED POPE & TALBOT CLOSED AT 2150 UP 25 CENTS 9310150105 931015 MANAGEMENT CORPORATE CHIEFS POLISH THEIR RELATIONS WITH DIRECTORS BY JOANN S LUBLIN STAFF REPORTER OF THE WALL STREET JOURNAL HIGH ANXIETY GRIPS AMERICA'S EXECUTIVE SUITES THESE DAYS AS A RECORD NUMBER OF CHIEF EXECUTIVE OFFICERS TOPPLE FROM POWER SINCE 1991 TWO DOZEN CEOS OF MAJOR US CORPORATIONS FROM AMERICAN EXPRESS CO TO WESTINGHOUSE ELECTRIC CORP HAVE BEEN FORCED OUT BY ACTIVIST BOARDS LEADERS NO LONGER CAN DEPEND ON HANDPICKED BOARD ALLIES FOR THEIR JOB SECURITY I FEEL LIKE I'VE BEEN STRIPPED OF MY OFFICE BY A BUNCH OF TURNCOATS DECLARED CARL KARCHER FOUNDER OF CARL KARCHER ENTERPRISES INC AFTER A BOARD PRIMARILY MADE UP OF HIS LONGTIME FRIENDS OUSTED HIM THIS MONTH AS CHAIRMAN OF THE FASTFOOD CHAIN IN ANAHEIM CALIF NOW MORE CORPORATE CHIEFS ARE TRYING TO FORTIFY THEIR CHANCES OF SURVIVAL BY SIGNIFICANTLY REVAMPING THEIR DEALINGS WITH DIRECTORS SOME ARE INVOLVING INDEPENDENT BOARD MEMBERS MORE IN RUNNING THE DAYTODAY BUSINESS OTHER CEOS ARE ASKING BOARDS FOR RIGOROUS AND FORMAL EVALUATIONS OF THEIR PERFORMANCE A FEW COMPANY HEADS EVEN ENGAGE OUTSIDE CONSULTANTS TO SMOOTH THEIR DEALINGS WITH DIRECTORS OR THEY TRY TO FORGE CLOSER TIES WITH POWERFUL BOARD MEMBERS EVEN EXECUTIVES WHO APPEAR SECURE IN THEIR JOBS ARE GOING THE EXTRA MILE CONSIDER IRVING W BAILEY II CHAIRMAN AND CEO OF CAPITAL HOLDING CORP A BIG INSURANCE AND CONSUMERFINANCE CONCERN IN LOUISVILLE KY LAST WINTER MR BAILEY SAYS HE TRAVELED TO FIVE US CITIES TO BRAINSTORM WITH DIRECTORS ABOUT WAYS TO IMPROVE SELECTION OF NEW BOARD MEMBERS AND OTHER CORPORATEGOVERNANCE ISSUES CEOS HAVE RARELY CONDUCTED SUCH HAND HOLDING OUTSIDE A CRISIS SITUATION MANAGEMENT EXPERTS SAY JOHN NASH PRESIDENT OF THE NATIONAL ASSOCIATION OF CORPORATE DIRECTORS IN WASHINGTON AGREES IN THE PAST CEOS TREATED BOARDS LIKE MUSHROOMS HE SAYS THEY KEPT THEM IN THE DARK AND FED THEM MANURE POOR BOARD CHEMISTRY PLAYED A GREATER ROLE THAN POOR FINANCIAL RESULTS IN THE RECENT DEPARTURE OF SEVERAL PROMINENT CEOS LAST APRIL FOR INSTANCE DIRECTORS OF GIDDINGS & LEWIS INC DEMANDED THE RESIGNATION OF WILLIAM J FIFE ITS CHAIRMAN AND CHIEF EXECUTIVE EVEN THOUGH HE HAD TRANSFORMED THE FORMERLY CASHSTARVED CONCERN INTO A SUCCESSFUL MAKER OF FACTORY MACHINES BOARD MEMBERS SAID MR FIFE HAD BEGUN TO TREAT GIDDINGS AS IF IT WERE HIS OWN EXECUTIVES CITED HIS ABRASIVE MANAGEMENT APPROACH AT THE TIME OF HIS DEPARTURE MR FIFE CITED GIDDINGS'S STRONG EARNINGS GROWTH HE DECLINES TO COMMENT FURTHER BERNARD MARCUS CHAIRMAN AND CHIEF EXECUTIVE OF HOME DEPOT INC A MAJOR HOMEIMPROVEMENT CHAIN BELIEVES MORE CEOS MAY GET PUSHED OUT IF THEY FAIL TO INVOLVE BOARD MEMBERS IN DAYTODAY BUSINESS DIRECTORS OF THE ATLANTA COMPANY MUST MAKE UNANNOUNCED VISITS TO BETWEEN EIGHT AND 10 HOME DEPOT STORES EVERY QUARTER AFTER WALKING AROUND A STORE AND CHATTING ANONYMOUSLY WITH CUSTOMERS A DIRECTOR DIVULGES HIS OR HER IDENTITY IN ORDER TO HEAR WORKERS' GRIPES THE REQUIREMENT EXTENDED TO OUTSIDE DIRECTORS IN 1991 ENABLES THE CHAIN TO LEARN QUICKLY ABOUT DIRTY FLOORS DIFFICULT CUSTOMERS INADEQUATE EMPLOYEE TRAINING AND OTHER STORE PROBLEMS EQUALLY IMPORTANT MR MARCUS SAYS YOU ARE NOW DEALING WITH MEMBERS OF THE BOARD WHO ABSOLUTELY KNOW AND UNDERSTAND YOUR BUSINESS DIRECTORS' FIRSTHAND KNOWLEDGE ALSO BUTTRESSES MR MARCUS'S JOB SECURITY SOME SUGGEST THE STORE VISITS ARE PART OF HOME DEPOT'S HIGHLY OPEN CORPORATE CULTURE THAT SAYS THERE WON'T BE ANY BOARD SURPRISES OR BOARD OVERTHROWS OF THE CHIEF EXECUTIVE SAYS FAYE WILSON A HOME DEPOT DIRECTOR AND BANKAMERICA CORP EXECUTIVE VICE PRESIDENT AN EXTENSIVE PERFORMANCE EVALUATION IS ANOTHER INCREASINGLY POPULAR DEVICE THAT SOME CHIEF EXECUTIVES USE TO LENGTHEN THEIR TENURE IN 1989 ONLY 14 OF 644 COMPANIES SYSTEMATICALLY EVALUATED THEIR CEO'S PERFORMANCE CONCLUDED A SURVEY BY CONSULTANTS SIBSON & CO THAT FIGURE PROBABLY HAS AT LEAST DOUBLED SINCE THEN SAYS CRAIG SCHNEIER A MANAGEMENT CONSULTANT IN PRINCETON NJ WHO CONDUCTED THE SIBSON STUDY THOMAS GOSSAGE CHAIRMAN AND CHIEF EXECUTIVE OF HERCULES INC NEGOTIATED HIS FIRST WRITTEN ACCOUNTABILITY LIST LAST SPRING WITH THE BOARD OF THE WILMINGTON DEL CHEMICAL AND AEROSPACE COMPANY HE PROPOSED FIVE AREAS OF ACCOUNTABILITY INCLUDING EARNINGS IMPROVEMENT REDUCTION IN THE NUMBER OF WORKER INJURIES INCREASED COMMUNITY AWARENESS OF HERCULES'S ANTIPOLLUTION EFFORTS AND A SHIFT IN THE COMPANY'S MIX OF BUSINESSES DIRECTORS WEREN'T SATISFIED THEY ASKED MR GOSSAGE TO TOUGHEN CERTAIN GOALS MR GOSSAGE SAYS DIRECTORS ASKED HIM TO DRAW UP A STRATEGIC ROAD MAP AND GOALS FOR THE YEAR 2000 HE HAD PROPOSED TO REACH A CERTAIN RETURN ON SHAREHOLDER EQUITY BY 1995 IN DECEMBER A BOARD COMMITTEE WILL EVALUATE MR GOSSAGE AGAINST HIS CHECKLIST HE THINKS THE PROCESS ENHANCES HIS JOB SECURITY DIRECTORS CAN'T COME OUT OF LEFT FIELD AND SAY YOU AREN'T DOING WHAT WE WANT YOU TO DO' BECAUSE WE HAVE A CONTRACT THAT WE NEGOTIATE EVERY YEAR HE SAYS TO THAT EXTENT I AM AT LESS RISK THAN I WOULD HAVE BEEN IF I WASN'T HAVING THAT KIND OF DIALOGUE WITH THE BOARD OTHER LEADERS HOPE TO PROLONG THEIR REIGNS BY GETTING EXPERT ADVICE ON HANDLING DIRECTORS IN THIS ENVIRONMENT YOU HAVE TO TAKE A MORE PERSONAL ROLE IN DEALING WITH A BOARD SAYS THE PRESIDENT AND CEO OF A MIDWESTERN PRODUCER OF PAPER AND PLASTICS SOON AFTER HE BECAME PRESIDENT LAST FALL A FEW DIRECTORS ENCOURAGED HIM TO SEE AN EXECUTIVE COACH DEE SODER IN NEW YORK COUNSELED HIM FOR FOUR MONTHS HE SAYS HE LEARNED AMONG OTHER THINGS THE IMPORTANCE OF BUILDING COALITIONS WITH KEY DIRECTORS AS WELL AS UNDERSTANDING INDIVIDUAL MEMBERS' PRIVATE AGENDAS IN MAY THE BOARD PROMOTED HIM TO CEO A GROWING NUMBER OF CHIEF EXECUTIVES USE ANOTHER TYPE OF HIRED GUN THE NATIONAL ASSOCIATION OF CORPORATE DIRECTORS THE NACD CHARGES 25000 TO PLAY TROUBLESHOOTER WHEN A CEO'S RELATIONS WITH DIRECTORS SOUR BUSINESSES CURRENTLY SUMMON THE GROUP A DOZEN TIMES A YEAR UP FROM TWICE A YEAR ABOUT THREE YEARS AGO OFFICIALS REPORT LAST FALL THE ASSOCIATION HELPED SAVE THE HEAD OF A SUCCESSFUL BILLIONDOLLAR MAKER OF BUSINESS SUPPLIES BOARD MEMBERS WERE VERY VERY UNHAPPY BECAUSE THE CHIEF EXECUTIVE TOLD THEM SO LITTLE RECALLS THE NACD'S MR NASH SEVERAL DIRECTORS THREATENED TO RESIGN DURING A TWODAY BOARD RETREAT ORGANIZED BY MR NASH AT THE CORPORATION'S HEADQUARTERS IN SEATTLE HE SAYS HE FINALLY PERSUADED THE CEO TO REFORM OR ULTIMATELY FACE DISMISSAL TODAY THE TOP EXECUTIVE HOLDS REGULAR STRATEGICPLANNING SESSIONS WITH DIRECTORS AND EVEN RETURNS THEIR CALLS SUCH SURVIVAL ATTEMPTS DON'T ALWAYS SUCCEED LAST JANUARY EASTMAN KODAK CO ANNOUNCED THAT KAYE WHITMORE THEN CHAIRMAN AND CHIEF EXECUTIVE HAD FORMED A SPECIAL BOARD PANEL TO WORK WITH SENIOR MANAGEMENT AND IMPROVE COMMUNICATION WITH OUTSIDE DIRECTORS BUT PEOPLE CLOSE TO KODAK NOW SAY IT WAS THE BOARD THAT CREATED THE COMMITTEE TO OVERSEE MR WHITMORE AND PROD HIM TO MAKE MASSIVE COST CUTS IN ANY CASE THE IDEA DIDN'T WORK DIRECTORS DISLIKED HIS TURNAROUND PLAN MR WHITMORE WOULDN'T COMMENT IN AUGUST THE BOARD OUSTED HIM 9310150104 931015 LOEHMANN'S GETS CREDIT FACILITY NEW YORK LOEHMANN'S INC RECEIVED A 20 MILLION REVOLVING CREDIT FACILITY FROM BANKAMERICA BUSINESS CREDIT A UNIT OF BANKAMERICA CORP THE LINE OF CREDIT WILL BE USED FOR WORKINGCAPITAL NEEDS AND TO MEET FUTURE MARKETING OBJECTIVES OF THE RETAILER OF WOMEN'S CLOTHING 9310150102 931015 HOUSE AGAIN FAILS TO CLEAR EMERGENCY JOBLESS AID WASHINGTON THE HOUSE FOR A SECOND TIME FAILED TO EXTEND A PROGRAM OF EMERGENCY JOBLESS AID THAT HAS BECOME EMBROILED IN THE UNRELATED BUT POLITICALLY CHARGED ISSUES OF WELFARE AND IMMIGRATION THE PROGRAM EXPIRED TWO WEEKS AGO BUT BY A 274149 VOTE YESTERDAY THE HOUSE REFUSED TO ACT ON A MEASURE EXTENDING EXTRA FEDERAL AID TO LONGTIME JOBLESS WORKERS WHO HAVE EXHAUSTED THEIR BASIC 26 WEEKS OF STATE AID THE HOUSE WILL MEET AGAIN TODAY IN A THIRD ATTEMPT TO RESOLVE THE EMBARRASSING FLAP NEARLY ALL REPUBLICANS AND MANY MODERATE AND CONSERVATIVE DEMOCRATS OBJECTED TO AN ATTEMPT BY DEMOCRATIC LEADERS TO DROP A PROVISION LIMITING SOME AGED IMMIGRANTS' WELFARE BENEFITS TO HELP PAY FOR THE JOBLESS AID THE LEADERS WERE PLACATING HISPANIC LAWMAKERS WHOSE PROTESTS ABOUT ALIENBASHING FIRST BLOCKED ACTION ON THE JOBLESS AID TWO WEEKS AGO THE JOBLESS MEASURE WOULD PROVIDE AN EXTRA SEVEN OR 13 WEEKS OF BENEFITS FOR WORKERS DEPENDING ON THE UNEMPLOYMENT RATE IN THEIR STATES IT WOULD BE THE FOURTH EXTENSION THROUGH JAN 1 OF A PROGRAM FIRST APPROVED NEARLY TWO YEARS AGO ABOUT ONE MILLION JOBLESS PEOPLE WOULD BENEFIT AT A COST OF 11 BILLION ACCORDING TO ANALYSTS 9310150101 931015 TECHNOLOGY LOTUS POSTS PROFIT FOR THIRD QUARTER THAT SURPASSES ANALYSTS' EXPECTATIONS BY JOHN R WILKE STAFF REPORTER OF THE WALL STREET JOURNAL LOTUS DEVELOPMENT CORP REPORTED STRONGERTHANEXPECTED PROFIT ON A 16 SALES GAIN FOR THE THIRD QUARTER AIDED BY A RESURGENCE OF ITS CORE SPREADSHEET SOFTWARE AND NEW COMMUNICATIONS PRODUCTS ALTHOUGH NET INCOME FELL 39 TO 183 MILLION OR 41 CENTS A SHARE FROM 301 MILLION OR 72 CENTS A SHARE THE YEAREARLIER QUARTER INCLUDED A ONETIME PRETAX GAIN OF 35 MILLION OR 55 CENTS A SHARE FROM THE SALE OF AN INVESTMENT LOTUS'S EARNINGS ROSE SHARPLY FROM THE 17 CENTS A SHARE EARNED BEFORE THE INVESTMENT GAIN SALES ROSE TO 2401 MILLION FROM 2067 MILLION IN NATIONAL OVERTHECOUNTER TRADING YESTERDAY LOTUS SHARES ROSE 25 CENTS TO 4975 THE IMPROVED RESULTS AT THE CAMBRIDGE MASS SOFTWARE MAKER SUGGESTED THAT PRICE COMPETITION IN PERSONALCOMPUTER SOFTWARE MAY BE EASING ANALYSTS NOTED AN UNEXPECTED GAIN IN GROSS PROFIT MARGINS AT LOTUS DESPITE LOWER AVERAGE PRICES ACROSS THE INDUSTRY MARGINS THIS TIME WERE THE HIGHEST IN RECENT MEMORY SAID MARY MEEKER AN ANALYST WITH MORGAN STANLEY MOST PEOPLE EXPECTED THEY WOULD DROP AGAIN THE HIGHER GROSS MARGINS MAY SIGNAL A RESPITE IN THE PRICE DOWNDRAFT THAT HAS ROARED THROUGH THE SOFTWARE INDUSTRY IN THE PAST 18 MONTHS DISCOUNTING AND BUNDLING OF MULTIPLE SOFTWARE TITLES INTO A SINGLE PACKAGE HAVE PUSHED THE AVERAGE PRICE OF PC SOFTWARE CLOSE TO 100 A UNIT EVEN THOUGH MOST PROGRAMS STILL HAVE RETAIL LIST PRICES OF 395 AND 495 LOTUS ALSO ATTRIBUTED ITS IMPROVEMENT TO A SHIFT IN ITS SALES MIX TO PRODUCTS THAT ARE LESS COSTLY TO MAKE AND TO LOWER MANUFACTURING COSTS ON HIGHER UNIT VOLUMES PARTICULARLY IN THE FAR EAST INDEED INTERNATIONAL SALES WERE UP 26 AND REACHED 50 OF TOTAL SALES JAPANESE SALES WERE ESPECIALLY STRONG LOTUS SAID SCOTT SMITH AN ANALYST WITH DONALDSON LUFKIN & JENRETTE SAID THE QUARTER SHOWS THE FIRST REAL SIGN OF ACCELERATING EARNINGS MOMENTUM AND WE SEE A LONG RUN AHEAD THE COMPANY HAS MOVED FROM BEING A TECHNOLOGY LAGGARD TO A TECHNOLOGY LEADER HE SAID LOTUS SAID IT ENJOYED STRONG GROWTH IN ITS COMMUNICATIONS SOFTWARE LINE INCLUDING ITS CCMAIL ELECTRONICMAIL PRODUCT AND LOTUS NOTES ITS HOTTEST PRODUCT WHICH ALLOWS GROUPS OF PEOPLE TO WORK TOGETHER AND SHARE INFORMATION ACROSS OFFICE COMPUTER NETWORKS NOTES AND CCMAIL WHILE STILL DWARFED BY LOTUS'S SPREADSHEET BUSINESS WILL GROW 88 THIS YEAR TO 170 MILLION AND AN ADDITIONAL 49 TO 254 MILLION NEXT YEAR ESTIMATED RICHARD G SHERLUND OF GOLDMAN SACHS & CO SALES OF LOTUS PRODUCTS THAT WORK WITH MICROSOFT CORP'S WINDOWS OPERATING SOFTWARE WERE UP 132 AND NOW ACCOUNT FOR 65 OF SALES LOTUS SAID OFFSETTING A 38 DECLINE IN SALES OF SOFTWARE FOR THE OLDER DOS OPERATING SYSTEM IN ADDITION SALES OF LOTUS SMARTSUITE A MULTITITLE SOFTWARE BUNDLE ACCOUNTED FOR 35 OF WINDOWSRELATED REVENUE THE GROWING IMPORTANCE OF SUITES AS A SALES CHANNEL COULD BE HELPING STABILIZE PRICES NOTED MORGAN STANLEY'S MS MEEKER WHO SAID THAT WHILE UNIT PRICES ARE FALLING AS A RESULT TOTAL SALES PER DESKTOP ARE HIGHER AND WITH LOTUS AND MICROSOFT THE ONLY MAJOR COMPETITORS IN THAT ARENA IT'S IN THE INTEREST OF BOTH COMPANIES TO MAINTAIN PRICING STABILITY SHE SAID ANALYSTS ALSO NOTED THAT LOTUS AND MICROSOFT HAVE CHOSEN TO IGNORE THE LATEST PRICE CUT BY BORLAND INTERNATIONAL INC WHICH RECENTLY DROPPED THE PRICE ON A VERSION OF ITS QUATTRO PRO SPREADSHEET TO 4995 9310150100 931015 MARKETING & MEDIA HOWARD STERN'S AUTOBIOGRAPHY IS INSTANT BESTSELLER BY MEG COX STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK RADIO SHOCK JOCK HOWARD STERN IS SHOCKING BOOKSELLERS ALL OVER THE COUNTRY THEY CAN'T BELIEVE HOW FAST HIS AUTOBIOGRAPHY IS SELLING MR STERN WHOSE PROFANITY GETS HIM IN HOT WATER WITH THE FEDERAL COMMUNICATIONS COMMISSION WRITES AS CRUDELY AS HE TALKS IN HIS BOOK PRIVATE PARTS THOUGH THE BOOK HIT BOOKSTORES ONLY A WEEK AGO IT ALREADY HAS JUMPED TO THE TOP OF MOST BESTSELLER LISTS IN MANY CITIES BOOKSTORES SOLD OUT IMMEDIATELY AND THE PUBLISHER HAD TO ORDER 500000 MORE COPIES FROM PRINTERS SOME 850000 COPIES WILL BE IN PRINT BY NEXT WEEK WE KNOW THAT THE DEVOTION OF HIS FANS IS EXTRAORDINARY AND HE'S BEEN PROMOTING THE BOOK ON THE AIR SINCE HE STARTED WRITING IT SAID CAROLYN REIDY PUBLISHER OF ADULT CONSUMER BOOKS FOR SIMON & SCHUSTER THE PARAMOUNT COMMUNICATIONS INC UNIT THAT PUBLISHED THE BOOK BUT THE VELOCITY OF DEMAND HAS SURPRISED US YESTERDAY AN ESTIMATED 5000 PEOPLE SHOWED UP FOR A HOWARD STERN BOOKSIGNING AT A BARNES & NOBLE BOOKSTORE ON NEW YORK CITY'S FIFTH AVENUE WITH SOME FANS ARRIVING BEFORE DAWN FOR THE 1230 PM EVENT THE POLICE WERE CALLED TO RESTORE ORDER THIS IS THE FASTESTSELLING BOOK AND THE BIGGEST EVENT WE'VE EVER HAD CROWED ROBERT WIETRAK DIRECTOR OF MERCHANDISING FOR BARNES & NOBLE INC THE BOOK APPEARS TO BE SELLING FASTEST IN THE 14 MARKETS WHERE MR STERN'S SHOW AIRS INCLUDING NEW YORK LOS ANGELES PHILADELPHIA AND CLEVELAND JOAN HULBERT OWNER OF FIVE WIT & WISDOM BOOKSTORES IN CLEVELAND SAID WE PRIDE OURSELVES ON BEING AN INTELLECTUAL BOOKSTORE BUT THIS IS THE FASTESTSELLING BOOK WE'VE EVER HAD MS HULBERT SAID 375 COPIES WERE SOLD BY LAST FRIDAY THE DAY AFTER HER STORE RECEIVED THEM GLEN GOLDMAN OWNER OF THE BOOK SOUP BOOKSTORE IN WEST HOLLYWOOD CALIF ALSO HAS VIRTUALLY SOLD OUT OF THE BOOK AND OFFERED THIS THEORY ABOUT ITS POPULARITY THERE IS SO MUCH STRESS THESE DAYS ON BEING POLITICALLY CORRECT AND I THINK PEOPLE FIND IT REFRESHING THAT THIS IS SOMEONE WHO SAYS WHATEVER IS ON HIS MIND THE BOOK'S CHAPTER TITLES INCLUDE IF YOU'RE NOT LIKE ME I HATE YOU AND THE POWER OF NEGATIVE THINKING CELEBRITIES WHO IRRITATE ME LIKE HIS SHOW THE BOOK FEATURES A GREAT DEAL OF DETAIL ABOUT MR STERN'S SEX LIFE THERE ARE ALSO PLENTY OF PHOTOGRAPHS OF SCANTILY CLAD WOMEN HIS PUBLISHER DENIED HIS REQUEST HOWEVER TO BE PICTURED NUDE ON THE COVER INSTEAD HE APPEARS PARTIALLY DRAPED IN A BATHROBE THE BOOK'S SUCCESS FOLLOWS THAT OF ANOTHER BESTSELLING RADIO STAR RUSH LIMBAUGH WHOSE SUCCESS EVEN MR STERN WILL HAVE A HARD TIME BEATING MR LIMBAUGH HAS SOLD CLOSE TO 25 MILLION HARDCOVER COPIES OF THE WAY THINGS OUGHT TO BE WHICH WAS PUBLISHED LAST YEAR BY POCKET BOOKS ANOTHER DIVISION OF PARAMOUNT CURRENTLY THE PAPERBACK EDITION IS NO 1 ON MOST BESTSELLER LISTS AND MR LIMBAUGH'S NEXT BOOK SEE I TOLD YOU SO WILL BE PUBLISHED NEXT MONTH 9310150099 931015 TECHNOLOGY GENE THERAPY REPAIRS SOME CELLS IN PATIENTS WITH CYSTIC FIBROSIS DALLAS RESEARCHERS SAID THEY USED GENE THERAPY TO REPAIR SOME HUMAN CELLS THAT CARRY THE GENETIC DEFECT THAT CAUSES CYSTIC FIBROSIS AN INHERITED DISORDER CHARACTERIZED BY RESPIRATORY INFECTION AND MALFUNCTION OF THE PANCREAS AFFECTING ABOUT 30000 PEOPLE IN THE US RESEARCHERS AT UNIVERSITY OF IOWA COLLEGE OF MEDICINE SAID AN EXPERIMENT INVOLVING CELLS IN THE NOSES OF THREE PATIENTS SHOWED FOR THE FIRST TIME THAT HUMAN CELLS CAN BE REPAIRED USING GENETHERAPY TECHNOLOGY BUT THE RESEARCHERS HAVE YET TO SHOW THE TECHNIQUE CAN PROVIDE A CLINICAL BENEFIT TO PATIENTS IT'S A VERY IMPORTANT STEP FORWARD BECAUSE IT SHOWS YOU CAN CORRECT CELLS IN HUMAN SUBJECTS SAID RONALD CRYSTAL A GENETHERAPY RESEARCHER AT CORNELL UNIVERSITY MEDICAL CENTER NEW YORK THE IOWA RESEARCH TEAM LED BY MICHAEL WELSH CORRECTED THE GENE DEFECT BY INFECTING NOSE CELLS WITH A COLD VIRUS IN WHICH THE COLDCAUSING PART OF THE VIRUS WAS REMOVED CELLS REMOVED FROM THE NASAL LINING SHOWED THAT THE HUMAN PROTEIN THAT IS DEFECTIVE IN ALL CELLS IN CYSTICFIBROSIS PATIENTS WAS PROPERLY WORKING THE IOWA TEAM PRESENTED ITS RESEARCH AT A CYSTIC FIBROSIS CONFERENCE HERE THE RESEARCH WILL BE FULLY REPORTED NEXT WEEK IN THE SCIENTIFIC JOURNAL CELL THIS YEAR DR CRYSTAL'S LAB AT CORNELL USED A SIMILAR TECHNIQUE TO TRANSFER A HEALTHY GENE TO THE LUNG TISSUE OF FOUR PATIENTS BUT THERE IS LITTLE EVIDENCE THAT THOSE CELLS HAVE BEEN REPAIRED SIX SEPARATE LABORATORIES IN THE US AND ONE IN BRITAIN ARE DEVELOPING SIMILAR RESEARCH EFFORTS 9310150098 931015 MONEY FUND ASSETS ADVANCE 200 MILLION WASHINGTON MONEY MARKET MUTUAL FUND ASSETS ROSE 200 MILLION TO 57535 BILLION FROM 57515 BILLION IN THE WEEK ENDED WEDNESDAY THE INVESTMENT COMPANY INSTITUTE SAID THE PREVIOUS WEEK'S FIGURE WAS REVISED ASSETS OF 649 RETAIL MONEY MARKET MUTUAL FUNDS FELL BY 112 BILLION TO 38870 BILLION THE TRADE GROUP SAID AMONG RETAIL FUNDS ASSETS OF 409 TAXABLE MONEY MARKET FUNDS FELL BY 1 BILLION TO 30448 BILLION ASSETS OF 240 RETAIL TAXEXEMPT FUNDS DECREASED BY 1134 MILLION TO 8422 BILLION ASSETS OF THE 274 INSTITUTIONAL MONEY MARKET FUNDS ROSE BY 131 BILLION TO 18665 BILLION AMONG INSTITUTIONAL FUNDS THE ASSETS OF 221 TAXABLE MONEY MARKET FUNDS ROSE BY 9453 MILLION TO 16471 BILLION ASSETS OF 53 TAXEXEMPT FUNDS ROSE BY 3672 MILLION TO 2193 BILLION 9310150097 931015 TECHNOLOGY GENENTECH REPORTS EARNINGS DOUBLED IN THIRD QUARTER BY MARILYN CHASE STAFF REPORTER OF THE WALL STREET JOURNAL SAN FRANCISCO GENENTECH INC REPORTED THAT ITS THIRDQUARTER NET INCOME DOUBLED CITING A SALES RESURGENCE OF ITS HEARTATTACK DRUG ACTIVASE IN A SURPRISE TO WALL STREET ANALYSTS THE BIOTECHNOLOGY COMPANY POSTED THIRDQUARTER NET INCOME OF 155 MILLION OR 13 CENTS A SHARE COMPARED WITH YEAREARLIER NET OF 77 MILLION OR SEVEN CENTS A SHARE ON FEWER SHARES OUTSTANDING ANALYSTS HAD EXPECTED 10 CENTS A SHARE THE COMPANY ANNOUNCED THE RESULTS WHILE THE MARKETS WERE OPEN IN LATE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE GENENTECH SHARES WERE QUOTED AT 4675 UP 625 CENTS MARKING A NEW 52WEEK HIGH REVENUE ROSE 20 TO 1654 MILLION FROM 1373 MILLION THE REVENUE PERFORMANCE WAS BUOYED BY THE JUMP IN ACTIVASE SALES WHICH ROSE TO 635 MILLION IN THE LATEST QUARTER UP 29 FROM 494 MILLION IN THE YEAREARLIER QUARTER AND UP 14 FROM 558 MILLION IN THE 1993 SECOND QUARTER G KIRK RAAB PRESIDENT AND CHIEF EXECUTIVE OFFICER SAID THE ROBUST SALES REFLECT THE MEDICAL COMMUNITY'S ACCEPTANCE OF THE VALUE OF USING ACTIVASE ALSO KNOWN BY ITS GENERIC NAME OF TPA THE 2000ADOSE ACTIVASE WHICH SELLS FOR 10 TIMES MORE THAN ITS OLDER COMPETITOR STREPTOKINASE SCORED A SLENDER BUT STATISTICALLY SIGNIFICANT SURVIVAL ADVANTAGE IN A HUGE INTERNATIONAL STUDY OF HEARTATTACK PATIENTS EARLIER THIS YEAR ON THE STRENGTH OF THAT STUDY GENENTECH WAS ABLE TO SHORE UP ITS FLAGGING MARKET SHARE TO 66 FROM ABOUT 50 WHERE IT HAD LANGUISHED FOR TWO YEARS AMID MEDICAL SKEPTICISM AND COSTCONTROL PRESSURES SALES OF GENENTECH'S PROTROPIN HUMANGROWTH HORMONE FOR THE TREATMENT OF DWARFISM JUMPED ABOUT 9 TO 554 MILLION FROM 51 MILLION IN THE PRIOR YEAR'S PERIOD THE COMPANY ATTRIBUTED THE SALES GAIN TO AN INCREASING NUMBER OF PEOPLE DIAGNOSED WITH GROWTHHORMONE DEFICIENCY IT WAS A VERY HIGHQUALITY QUARTER THE SALES WERE SO ROBUST THAT WE DIDN'T SEE THE USUAL THIRDQUARTER FALLOFF IN HEARTATTACK DRUG SALES SAID STUART WEISBROAD AN ANALYST WITH MERRILL LYNCH & CO IN NEW YORK I EXPECT ACTIVASE SALES TO CONTINUE TO GROW ROBUSTLY HE ADDED GENENTECH TOLD ANALYSTS IT LOOKS FOR APPROVAL FROM THE FOOD AND DRUG ADMINISTRATION BY YEAR END FOR ITS NEXT BIG PRODUCT PULMOZYME FOR CYSTIC FIBROSIS 9310150096 931015 REVIEW & OUTLOOK EDITORIAL THE CULTURE WAR THE FRENCH CULTURE MINISTER SAYS HIS COUNTRY'S CIVILIZATION IS HANGING BY A THREAD JUDGING BY THE BITS OF AMERICANA THAT THRIVE IN FRANCE WE'D SAY IT IS ALREADY TOO LATE TURN ON FRENCH TV THERE'S STARSKY AND HUTCH TURN ON FRENCH RADIO IT'S THE BEE GEES' CONTRIBUTIONS TO THE GREASE SOUNDTRACK THE FRENCH GOVERNMENT AND THE LEADERS OF ITS MOVIE INDUSTRY ARE ENGAGED IN A SMALL BUT VOCIFEROUS CAMPAIGN TO EXCLUDE MOVIES FROM THE GATT ROUND FEARING THAT A FREETRADE REGIME WOULD FORCE FRANCE TO END ITS SUBSIDIES TO ITS MOVIE INDUSTRY THE FRENCH GOVERNMENT ARGUES THAT MOVIES CAN'T BE TREATED JUST LIKE ANY OTHER GOOD THEY ARE AN ASPECT OF CULTURE NOT MERELY A COMMODITY THUS THE NEED FOR A CULTURAL EXEMPTION GOVERNMENT OFFICIALS SAY THAT MOVIES ARE CULTURAL PRODUCTS SO NATIONS SHOULD THEREFORE BE ALLOWED TO ERECT BARRIERS TO THEIR ENTRY IT MAY BE CLOSER TO THE TRUTH HOWEVER TO ARGUE THAT THE FRENCH CULTURAL COMMUNITY HAS BECOME MORE SELFINDULGENT AS STATE SUBSIDIES HAVE SHELTERED IT FROM CONSUMER TASTES THE FRENCH AUDIENCE FOR DOMESTIC FILMS HAS BEEN DROPPING FRENCH MOVIES WERE NEVER HUGELY COMMERCIAL IN THE ENGLISHSPEAKING WORLD BUT IN THE 1950S AND 1960S THEY HAD A DEVOTED FOLLOWING IN SOPHISTICATED URBAN THEATERS FOR WHATEVER REASON THOSE SOPHISTICATED CINEASTES HAVE INCREASINGLY LOST INTEREST IN FRENCH MOVIES THE FRENCH NOW HAVE A QUOTA RULE THAT 60 OF THEIR TELEVISION PROGRAMMING MUST BE PRODUCED WITHIN THE EC BUT IN HOLLYWOOD IT IS POSSIBLE TO HAVE A MOVIE FUNDED BY ITALIANS PRODUCED BY A BRIT DIRECTED BY A DUTCHMAN AND STARRING DANIEL DAYLEWIS IS THIS AN AMERICAN MOVIE OR AN EC MOVIE OR JUST A MOVIE IN FACT HOLLYWOOD'S GREAT SUCCESS PROBABLY DERIVES FROM THE FACT THAT IT IS SO MULTINATIONAL AND FROM THE DYNAMIC TENSION BETWEEN CREATIVE TALENT AND COMMERCIAL COMPETITION THE HISTORY OF THE PAST FEW YEARS HAS SHOWN THAT COUNTRIES THAT FIGHT THE SPREAD OF INFORMATION AND MEDIA END UP LOSING THE FRENCH GOVERNMENT HAS RECENTLY SOUGHT TO BAR TED TURNER'S TNT CHANNEL FROM EUROPE SO THAT CHILDREN MIGHT BE PROTECTED FROM THE FLINTSTONES THIS IS A LOSING BATTLE TECHNOLOGICAL ADVANCE WILL SOON MAKE IT POSSIBLE TO PULL IN A FEW HUNDRED CHANNELS FRANCE IS RIGHTLY PROUD OF THAT THING CALLED FRENCH CULTURE BUT EACH PERSON HAS A DIFFERENT SENSE OF WHAT FRENCH CULTURE IS IT'S WORTH NOTING THAT THE VAST MAJORITY OF FRENCH PEOPLE SEEM TO BE ABLE TO GO TO OFFERINGS SUCH AS DENIS LA MALICE WITHOUT LEAVING THE MOVIE THEATER ANY LESS FRENCH THE MOVIE MAKERS HOWEVER SAY THAT THE REAL THREAT IS GLOBAL CULTURAL UNIFORMITY FRENCH CULTURE MINISTER JACQUE TOUBON ASSERTS WHO CAN BE BLIND TODAY TO THE THREAT OF A WORLD GRADUALLY INVADED BY AN IDENTICAL CULTURE ANGLOSAXON CULTURE UNDER THE COVER OF ECONOMIC LIBERALISM WE'D LIKE TO KNOW PRECISELY WHAT IDENTICAL CULTURE RUNS THROUGH MARTIN SCORCESE'S THE AGE OF INNOCENCE PLAYING RECENTLY IN PARIS AT LA BASTILLE BAMBI GRAND PAVOIS AND SLIVER UGC MONTPARNASSE IN ANY CASE THERE IS A SOLUTION THE REST OF THE WORLD SHOULD LET FRANCE CONTINUE TO SUBSIDIZE ITS MOVIES IF THE COUNTRY WANTS TO EMPLOY MORE SOUND TECHNICIANS THAN THE MARKETPLACE WOULD SUPPORT THAT IS THEIR RIGHT BUT FRANCE SHOULD END ITS QUOTAS AND ALLOW THE FREE FLOW OF CULTURE THE FRENCH GOVERNMENT MAY ARGUE THAT IT MUST PROTECT ITS CITIZENS FROM MAKING CRASS DECISIONS ABOUT HOW TO SPEND THEIR SATURDAY NIGHTS BUT FRANKLY MY DEAR WE DON'T GIVE A DAMN 9310150095 931015 ONTARIO TIGHTENS RULES OF DISCLOSURE FOR EXECUTIVE PAY BY SUZANNE MCGEE STAFF REPORTER OF THE WALL STREET JOURNAL TORONTO THE ONTARIO GOVERNMENT ANNOUNCED NEW TOUGHER EXECUTIVEPAY DISCLOSURE REGULATIONS FOR COMPANIES LISTED ON THE TORONTO STOCK EXCHANGE CATCHING CANADIAN CORPORATE LEADERS BY SURPRISE UNDER THE NEW RULES WHICH ARE VERY SIMILAR TO CURRENT US SECURITIES AND EXCHANGE COMMISSION REQUIREMENTS PUBLIC COMPANIES IN ONTARIO WILL HAVE TO DISCLOSE INDIVIDUAL COMPENSATION PAID TO CHIEF EXECUTIVE OFFICERS AND TO THE FOUR OTHER MOST HIGHLY PAID EXECUTIVES CURRENTLY COMPANIES MUST DISCLOSE ONLY AGGREGATE COMPENSATION PAID TO THE TOP FIVE CORPORATE OFFICERS THIS IS AN ABSOLUTELY RADICAL MOVE FOR CANADIANS SAID KEN HUGESSEN MANAGING DIRECTOR IN CHARGE OF EXECUTIVE COMPENSATION AT WILLIAM M MERCER LTD TORONTO THE GENERAL CONSENSUS IS THAT DISCLOSURE HERE HAS BEEN SUBSTANDARD AND INSTITUTIONAL INVESTORS HAVE GENERALLY BEEN SMALL WEAK AND PASSIVE PARTICIPANTS IN CANADIAN MARKETS ONTARIO'S FINANCE MINISTER FLOYD LAUGHREN UNVEILED THE PROPOSED CHANGES TO THE PROVINCIAL LEGISLATURE YESTERDAY THEY ARE SLATED TO TAKE EFFECT FOR MOST COMPANIES ON OCT 31 ALTHOUGH SMALLER ENTERPRISES WILL HAVE UNTIL NEXT MAY TO COMPLY IN ADDITION TO THE DISCLOSURE OF SALARIES BONUSES STOCK OPTIONS AND OTHER BENEFITS THE GOVERNMENT WILL REQUIRE LARGE ENTERPRISES TO PROVIDE A FIVEYEAR STOCKPERFORMANCE CHART COMPARING THE COMPANY'S STOCK PERFORMANCE WITH THAT OF A BROAD MARKET INDICATOR AS WELL AS THAT OF COMPARABLE STOCKS COMPENSATION COMMITTEES WILL BE REQUIRED TO REPORT ON HOW THEY REACHED DECISIONS ON EXECUTIVE PAY AND DISCLOSE THE EXTENT OF THEIR OWN INDEPENDENCE FROM MANAGEMENT AND CONTROLLING SHAREHOLDERS ALAIN TUCHMAIER A FINANCIALSERVICES ANALYST WITH MCLEAN MCCARTHY LTD IN TORONTO SAID THE HIGHER LEVELS OF DISCLOSURE WILL ALLOW ANALYSTS TO DETERMINE WHETHER OR NOT COMPENSATION STRUCTURES IN PLACE ARE APPROPRIATE THE GOVERNMENT DIDN'T CONSULT WITH BUSINESS LEADERS BEFORE ANNOUNCING THE NEW REGULATIONS ROBERT HARDING PRESIDENT OF HEES INTERNATIONAL BANCORP SAID THE MEASURES SEEM TO HAVE COME OUT OF THE BLUE HE DECLINED TO COMMENT IN DETAIL I THINK THE GOVERNMENT KNEW THEY'D GET AN EXTREMELY NEGATIVE REACTION AND MADE A POLITICAL DECISION TO GO AHEAD WITH IT MERCER'S MR HUGESSEN SAID ONE ISSUE FOR BUSINESSPEOPLE IS PRIVACY LYNNE KILPATRICK A SPOKESWOMAN FOR THE BANK OF MONTREAL NOTED THAT WHILE THE BANK WILL BE HAPPY TO COMPLY WITH THE NEW RULES THE ISSUE OF PRIVACY IS STILL A CONCERN AMONG OUR SENIOR PEOPLE 9310150094 931015 BUSINESS BRIEF SKYLINK AMERICA INC CONCERN TO PURCHASE VESSEL TO START RIVERBOAT GAMBLING SKYLINK AMERICA INC DALLAS A PROVIDER OF CABLE TELEVISION PROGRAMMING AND SERVICES THAT RECENTLY WON A RIVERBOAT GAMBLING LICENSE IN LOUISIANA SAID IT AGREED TO PURCHASE A GAMBLING VESSEL FROM CLOSELY HELD KEHL RIVER BOATS INC FOR 1345 MILLION IN CASH PLUS COMMON STOCK AND WARRANTS SKYLINK SEEKS TO DIVERSIFY ITS OPERATIONS INTO RIVERBOAT GAMBLING THE BOAT CURRENTLY UNDER CONSTRUCTION AND ABOUT 50 COMPLETED IS EXPECTED TO BE DELIVERED ABOUT APRIL 1 IN ADDITION TO THE CASH SKYLINK AGREED TO ISSUE KEHL 100000 SHARES OF COMMON STOCK ALONG WITH WARRANTS TO PURCHASE BETWEEN 50000 AND 100000 ADDITIONAL SHARES SKYLINK ALSO SAID THAT AT ITS OPTION 345 MILLION OF THE CASH PORTION COULD BE PAID BY ISSUING ADDITIONAL SHARES SKYLINK SAID THAT IN CONNECTION WITH THE PURCHASE THE COMPANY PLANS TO ISSUE SENIOR SECURED NOTES IN A PRIVATE PLACEMENT TRANSACTION 9310150093 931015 PEPPERAND SALT THE CHALLENGE OF THIS GENERATION IS TO MAKE THE WORLD SAFE FOR DIVERSITY BUT I DO FIND IT SOMEWHAT LESS TAXING SUGGESTED SLOGAN FOR THE NEW ADMINISTRATION'S APPOINTMENTS THE ASCENT OF A WOMAN 9310150092 931015 LEGAL BEAT ENTREPRENEURIAL LAWYERS COACH CLIENTS TO REPRESENT THEMSELVES BY JUNDA WOO STAFF REPORTER OF THE WALL STREET JOURNAL BARBARA SHEA IS ONE OF THE FEW LAWYERS IN THE COUNTRY WHO MEASURES HER SUCCESS BY HOW FEW HOURS SHE BILLS MS SHEA TEACHES NONLAWYERS HOW TO HANDLE THEIR LEGAL WORK THEMSELVES SO THAT CLIENTS HAVE BOTH THE BENEFITS OF HIRING A LAWYER AND THE ECONOMY OF GOING IT ALONE THE CONCEPT HAS ATTRACTED ENOUGH INTEREST TO INSPIRE MS SHEA AND ANOTHER LAWYER TO START PLANNING LEGALADVICE SERVICE FRANCHISES MS SHEA'S THREEYEAROLD SERVICE BASED IN ROWAYTON CONN IS CALLED COURT COACH UNLIKE A PARALEGAL MS SHEA MAY AS AN ATTORNEY GIVE FULLFLEDGED LEGAL ADVICE AND SHE REVIEWS EVERY COURT PAPER HER CLIENTS FILE SHE CHARGES 150 TO 175 AN HOUR JUST BELOW HER USUAL RATE FOR TRADITIONAL CLIENTS BUT SELFHELP CLIENTS HANDLE MUCH OF THE DRUDGERY SUCH AS PHOTOCOPYING AND FILING PAPERS WITH THE COURT ALTHOUGH MOST BAR GROUPS SUPPORT SUCH SERVICES THEY AREN'T UNIVERSALLY APPLAUDED A LOT OF LAWYERS ESPECIALLY LITIGATORS THINK THAT UNLESS THEY CAN BE FULLY RESPONSIBLE AND MANAGE A CASE IN ALL ITS PARTICULARS THAT THEY DON'T WANT TO BE INVOLVED AT ALL SAYS JOEL HENNING A SENIOR VICE PRESIDENT OF HILDEBRANDT INC A SOMERVILLE NJ LAWFIRM CONSULTING COMPANY THAT IS WATCHING THE TREND LEGALMALPRACTICE INSURERS ARE QUEASY TOO A MIAMI LAWYER WHO STARTED A PARALEGAL CLINIC SUPERVISED BY LAWYERS A YEAR AGO STILL HASN'T BEEN ABLE TO GET MALPRACTICE INSURANCE OTHER ATTORNEYS INTERVIEWED FOR THIS STORY SAY THEY DO HAVE MALPRACTICE INSURANCE SKEPTICS WARN THAT SUCH ARRANGEMENTS MAY MAKE ATTORNEYS VULNERABLE TO LEGALMALPRACTICE SUITS IF CLIENTS MAKE MISTAKES AFTER RECEIVING SOME LEGAL ADVICE UNFORTUNATELY IF THE PEOPLE DON'T GET A GOOD RESULT I THINK THERE'S GOING TO BE SOME MONDAY MORNING QUARTERBACKING SAYS PATRICIA A MYERS A VICE PRESIDENT AT SHAND MORAHAN & CO A LEGAL INSURER IN EVANSTON ILL IF THE COUNTRY AS A WHOLE WEREN'T SO LITIGATIONPRONE AND PEOPLE WEREN'T RELUCTANT TO TAKE BAD RESULTS AS WELL AS GOOD RESULTS I'D THINK IT WAS A GREAT IDEA BUT SERVICES LIKE MS SHEA'S GIVE LAWYERS A CHANCE TO COMPETE WITH LOWER PRICED PARALEGAL SERVICES AND LEGAL HOWTO BOOKS BOTH OF WHICH HAVE PROLIFERATED IN THE PAST DECADE AS LAWYERS' FEES HAVE CLIMBED MORE AND MORE ENTREPRENEURIAL LAWYERS ARE GOING TO SEE THERE IS A HUGE MARKET IN SERVING PEOPLE WHO CAN'T PAY FOR SOUPTONUTS REPRESENTATION AND DON'T NEED SOUPTONUTS REPRESENTATION SAYS SARAANN DETERMAN CHAIRWOMAN OF AN AMERICAN BAR ASSOCIATION COMMITTEE ON ALTERNATIVE LEGAL SERVICES MANAGEMENT CONSULTANT ROBERT MATULONIS FOR INSTANCE RETAINED MS SHEA TO HELP HIM IN A FEE DISPUTE WITH OTHER ATTORNEYS THE DISPUTE HAD DRAGGED ON FOR TWO YEARS WHEN MR MATULONIS OF WILTON CONN DROPPED BY MS SHEA'S OFFICE IN SEPTEMBER 1991 SHE READ A CHRONOLOGY HE HAD WRITTEN SHOWING THAT HIS FORMER ATTORNEYS WHO REPRESENTED HIM IN A CARACCIDENT CASE WERE SEEKING A BIGGER SHARE OF THE SETTLEMENT THAN HE BELIEVED THEY DESERVED MS SHEA EXPLAINED A KEY LEGAL POINT MR MATULONIS'S SETTLEMENT CONTRACT WAS STILL VALID DESPITE WHAT THE ATTORNEYS MIGHT ARGUE SHE SAID HE COULD FILE FOR A COURT ORDER DECLARING THAT THE AGREEMENT WHICH SUPPORTED HIS POSITION WAS FINAL ARMED WITH THIS KNOWLEDGE MR MATULONIS JOINED MS SHEA IN A FACETOFACE MEETING WITH THE ATTORNEYS AND SETTLEMENT TALKS MOVED INTO HIGH GEAR MR MATULONIS DRAFTED ALMOST ALL THE CORRESPONDENCE ON HIS OWN WORD PROCESSOR BARBARA WOULD REVIEW IT QUICKLY AND TIGHTEN IT LEGALLY AND THEN WE'D LET IT GO HE SAYS THE CASE WAS SETTLED EARLY LAST YEAR MR MATULONIS WHO PAID MS SHEA ABOUT 1200 ESTIMATES THAT HE SAVED 5000 BY REPRESENTING HIMSELF MS SHEA MAKES CLEAR IN CONTRACTS THAT SHE ISN'T REPRESENTING SUCH CLIENTS AS AN ATTORNEY ALTHOUGH THEY CAN FORMALLY RETAIN HER LATER IF THEY WISH SHE CONSIDERS COURT COACH A SUPPLEMENT TO TRADITIONAL LEGAL ACTIVITIES WHICH MAKE UP THE BULK OF HER FIRM'S WORK THIS IS DIVERSIFYING YOUR PRODUCT SAYS MS SHEA WE DON'T JUST LIMIT OURSELVES TO ONE KIND OF CASH FLOW BECAUSE CLIENTS PAY ON THE SPOT THERE ARE FEWER DEBTCOLLECTION WORRIES MS SHEA DOESN'T HAVE DATA ON HOW MUCH THE SERVICE ADDS TO HER BOTTOM LINE BUT SHE SAYS 15 OF CLIENTS ARE COURT COACH CUSTOMERS AND THESE ARE CLIENTS THAT WOULD NOT EXIST OTHERWISE MIAMI ATTORNEY SHERRIE MARCUS HAS REACHED MUCH THE SAME CONCLUSION ABOUT THE VIRTUE OF OFFERING LIMITED LEGAL ASSISTANCE SHE IS DEVELOPING PLANS TO FRANCHISE HER SUNSET LEGAL CENTER INC A PARALEGAL CLINIC SUPERVISED BY ATTORNEYS MIAMI MARKETER PATRICIA NOWROUZI RECENTLY GOT HELP FROM MS MARCUS IN NEGOTIATING TO REDUCE HER MORTGAGE AFTER HER HOUSE WAS HIT BY HURRICANE ANDREW MS NOWROUZI MADE CALLS TO THE MORTGAGE COMPANY AND FILED THE FINAL ADJUSTED PAPERS BUT MS MARCUS CALLED THE MORTGAGE COMPANY WHEN MS NOWROUZI STARTED GETTING THE RUNAROUND THE FEE 200 I REALLY WANTED TO BE ON TOP OF THINGS AND I WANTED TO BE INVOLVED BECAUSE I NEEDED TO KNOW ON A MINUTETOMINUTE BASIS WHAT WAS HAPPENING WITH MY LIFE MS NOWROUZI SAYS THE SMATTERING OF LAWYERS ACROSS THE COUNTRY WHO DO SIMILAR WORK SAY COURT COACHING IS NOT SO DIFFERENT FROM GIVING ANOTHER LAWYER'S CLIENT A SECOND OPINION OR PROVIDING A CONSULTATION SOME OF THEM HAVE CREATED CLIENT LAW LIBRARIES FULL OF CLIPPINGS AND REFERENCE MATERIALS OTHERS ADVISE PEOPLE WHO ARE GOING THROUGH MEDIATION MORE AND MORE LAWYERS ARE DOING IT FOR SELFINTERESTED REASONS SAYS FORREST S MOSTEN A FAMILYLAW SPECIALIST IN BEVERLY HILLS CALIF WHO HAS COACHED THE LAWYERLESS FOR 14 YEARS IT'S NOT THE DIFFERENCE BETWEEN A 12000 FEE AND A 1000 FEE IT'S THE DIFFERENCE BETWEEN A 1000 FEE AND NO FEE IN ADDITION PRACTITIONERS SAY CLIENTS SEEM HAPPIER AND THE WORK CAN BE MORE GRATIFYING THAN FULLTIME REPRESENTATION I RARELY TAKE THOSE KINDS OF CLIENTS THAT WANT ME TO TAKE THE WHOLE TASK SAYS LOWELL K HALVERSON A PAST PRESIDENT OF THE WASHINGTON STATE BAR ASSOCIATION WHO PRACTICES IN MERCER ISLAND WASH I THINK THAT JUST BREEDS UNHEALTHY DEPENDENCY EVEN ATTORNEY PROFESSIONAL ASSOCIATIONS WHICH ARE FREQUENTLY HOSTILE TO PARALEGAL CLINICS AND OTHER SERVICES AIMED AT DOITYOURSELFERS PRAISE THE IDEA WE'RE HERE TO SERVE PEOPLE SAYS FLORIDA BAR PRESIDENT PATRICIA A SEITZ BECAUSE ATTORNEYS ARE GIVING THE ADVICE SHE SAYS THE BAR ISN'T ALARMED CONSULTANTS WHO HELP COMPANIES FIND SUITABLE MERGER PARTNERS AREN'T OBLIGATED TO TELL THEIR CLIENTS ADVERSE INFORMATION ABOUT A PROSPECTIVE PARTNER NEW YORK'S HIGH COURT RULED THE DECISION IS ONE OF THE FIRST BY A STATE HIGH COURT TO ADDRESS THE OBLIGATIONS OF SOCALLED FINDERS WHO COLLECT A FEE IF THE MERGER OR TAKEOVER IS COMPLETED WITH ONE OF THEIR FINDS THE CASE BEFORE THE NEW YORK COURT OF APPEALS STEMMED FROM THE 1989 TAKEOVER OF WELLINGTON ADVERTISING INC WELLINGTON'S FINDER NORTHEAST GENERAL CORP WAS SUCCESSFUL IN LOCATING A MERGER PARTNER FOR THE COMPANY BUT WELLINGTON CLAIMED IT WOULDN'T HAVE AGREED TO THE ACQUISITION IF THE FINDER HAD DISCLOSED MORE ABOUT THE ACQUIRER'S REPUTATION IN OTHER TAKEOVERS TWO LOWER COURTS DECIDED WELLINGTON DIDN'T HAVE TO PAY THE 150000 FINDER'S FEE TO NORTHEAST RULING THAT FINDERS HAVE A FIDUCIARY DUTY TO DISCLOSE SUCH INFORMATION BUT NEW YORK'S COURT OF APPEALS SAID SUCH A DUTY ONLY EXISTS IF IT IS SPELLED OUT IN THE FINDER'S CONTRACT THE HIGH COURT ALSO SAID THAT FINDERS DON'T HAVE THE SAME OBLIGATIONS AS BROKERS WHO ACTUALLY NEGOTIATE MERGERS OR TAKEOVERS RANDY MASTRO AN ATTORNEY FOR THE FORMER OWNERS OF WELLINGTON SAID HE IS CONSIDERING WHETHER TO ASK THE COURT TO REHEAR THE CASE IT SHOULD NOT BE THE CASE THAT SOMEONE YOU RETAIN IS ALLOWED TO WITHHOLD MATERIAL INFORMATION AND STILL BE ENTITLED TO A FEE HE SAID MY CLIENTS WERE COMPLETELY TAKEN TO THE CLEANERS IN THIS DEAL TARIFF APPEAL THE US GOVERNMENT HAS APPEALED A FEDERAL JUDGE'S RULING THAT THE US WRONGLY IMPOSED A 25 TARIFF ON AN IMPORTED TWODOOR SPORTUTILITY VEHICLE MADE BY JAPAN'S NISSAN MOTOR CO THE JUDGE FOUND IN MAY THAT WHILE THE TWODOOR PATHFINDER SHARED SOME ENGINEERING CHARACTERISTICS WITH TRUCKS IT WAS PRIMARILY DESIGNED FOR PASSENGERS NOT CARGO AND THEREFORE FALLS UNDER THE 25 DUTY IMPOSED ON IMPORTED CARS THE DECISION HAS BEEN EXPECTED TO HINDER EFFORTS BY US AUTO MAKERS TO HAVE THE GOVERNMENT EXTEND THE 25 LEVY TO FOURDOOR MULTIPURPOSE VEHICLES WADE LAMBERT CONTRIBUTED TO THIS ARTICLE 9310150091 931015 SUMMER OLYMPIC FEVER HITS AUSTRALIA THOUGH GAMES DON'T START UNTIL 2000 BY S KARENE WITCHER STAFF REPORTER OF THE WALL STREET JOURNAL WHILE MOST PEOPLE HAD BARELY HEARD A FEW WEEKS AGO THAT SYDNEY AUSTRALIA WOULD HOST THE 2000 OLYMPIC SUMMER GAMES THE FIVESTAR REGENT HOTEL THERE WAS RECEIVING ITS FIRST FAXED REQUEST FOR A ROOM RESERVATION SEVEN YEARS FROM NOW THE REQUEST CAME FROM A NEW ZEALAND RESIDENT WHO MUST HAVE BEEN STANDING BY THE FAX MACHINE WHEN THE NEWS WAS ANNOUNCED SAYS A REGENT SPOKESWOMAN AS THE DAY UNFOLDED THE HOTEL SAYS IT RECEIVED AT LEAST 400 TELEPHONE CALLS FROM WOULDBE OLYMPIC VISITORS TRYING TO BOOK ROOMS ALTHOUGH THE GAMES WILL BE STAGED BETWEEN SEPT 16 AND OCT 1 2000 THE REGENT WASN'T ALONE BUT LIKE MOST OF THE CITY'S OTHER HOTELS IT WON'T ACCEPT RESERVATIONS UNTIL 1998 SAYS GREG KNAPP CHIEF EXECUTIVE OF THE AUSTRALIAN HOTELS ASSOCIATION IN SYDNEY THAT'S BECAUSE UNDER AN AGREEMENT WITH THE INTERNATIONAL OLYMPICS COMMITTEE THE CITY'S FOURSTAR AND FIVESTAR HOTELS ARE TO ALLOCATE 80 OF THEIR ROOMS TO A CENTRAL RESERVATIONS SYSTEM THAT WON'T BE IN OPERATION FOR SEVERAL MORE YEARS THE HOTELS ARE TO HANDLE BOOKINGS FOR THE REST OF THEIR ROOMS THEMSELVES TO DISCOURAGE GOUGING MR KNAPP SAYS HOTELS ARE VOLUNTEERING TO PUT A CAP ON ROOM RATES COPYING A MOVE BY ATLANTA WHICH IS HOSTING THE 1996 SUMMER GAMES PRICES FOR THE 2000 OLYMPICS WILL BE BASED ON A HOTEL'S PUBLISHED ROOM RATE IN 1998 ADJUSTED FOR INFLATION AWARE OF THE EXISTENCE OF LIFE AFTER THE OLYMPICS THE INDUSTRY DOESN'T WANT GUESTS TO FEEL THAT SYDNEY HOTELS ARE TRYING TO RIP PEOPLE OFF MR KNAPP SAYS UNFORTUNATELY HE SAYS THAT HAPPENED DURING AUSTRALIA'S BICENTENNIAL CELEBRATIONS IN 1988 WHEN CERTAIN HOTEL RATES SPIKED HURTING THE COUNTRY'S IMAGE INITIALLY THE PRICING AGREEMENT BINDS ONLY FOURSTAR AND FIVESTAR HOTELS WHICH REPRESENT ABOUT 38000 ROOMS THE HOTEL ASSOCIATION SAYS IT EXPECTS THE ARRANGEMENT TO TRICKLE DOWN TO THREESTAR ESTABLISHMENTS AS WELL AS AN INCENTIVE MR KNAPP SAYS HOTELS COVERED BY THE AGREEMENT WILL BE PROMISED OLYMPICS TICKETS FOR THEIR GUESTS BECAUSE SYDNEY HAS A GLUT OF HOTEL ROOMS INDUSTRY EXECUTIVES DOUBT THE OLYMPICS WILL UNLEASH A HOTELBUILDING BOOM NONETHELESS THE INDUSTRY ESTIMATES THAT BY 2000 THE CITY WILL HAVE 140000 ROOMS OF THREE FOUR AND FIVESTAR QUALITY UP FROM ABOUT 117000 TODAY IN PERCENTAGE TERMS OCCUPANCY RATES NOW ARE AVERAGING IN THE LOW 50S AND PROFIT MARGINS ARE BEING SQUEEZED WHICH EXPLAINS WHY MANY HOTELIERS ARE PINNING THEIR HOPES ON AN OLYMPICSLED RECOVERY BEFORE 2000 KPMG PEAT MARWICK THE INTERNATIONAL ACCOUNTING CONCERN PROJECTS THAT THE OLYMPICS WILL ADD 13 MILLION OVERSEAS VISITORS AND A3 BILLION US2 BILLION TO AUSTRALIA'S TOURISM COFFERS BETWEEN 1994 AND 2004 THE CRUISESHIP INDUSTRY IS ALSO LOOKING FOR A BONANZA TRAFALGAR HOUSE PLC'S CUNARD LINE WHICH OPERATES THE QE2 SAYS IT'S THE FIRST IN LINE FOR A SPOT IN SYDNEY'S HARBOR HAVING BOOKED THREE BERTHS A YEAR AGO JUST IN CASE SYDNEY WON A CUNARD LINE OFFICIAL SAYS IT'S TOO EARLY TO TELL WHETHER THE QE2 WILL BE AMONG THE VESSELS IT SAILS TO SYDNEY FOR THE GAMES BUT IT IS LIKELY HE SAYS THAT EACH OF THE COMPANY'S SHIPS WILL BE CHARTERED TO BIG CORPORATIONS RATHER THAN MADE AVAILABLE TO THE PUBLIC MEANWHILE PETER BARGE MANAGING DIRECTOR OF HOTEL REALTY CONCERN JLW TRANSACT PTY SAYS THE 2000 OLYMPICS ARE SPURRING INVESTORS MOSTLY FROM ASIA TO SCOUT FOR HOTEL ACQUISITIONS IN SYDNEY THE HOTEL REALTY CONCERN ESTIMATES THAT VALUES OF AUSTRALIAN HOTELS HAVE FALLEN 40 SINCE THE HEYDAYS OF THE 1980S FEARING THE OLYMPIC ANNOUNCEMENT COULD FUEL PRICES A LOT OF PEOPLE WHO WERE INTENDING TO COME OUT HERE IN THE NEXT 12 MONTHS TO HAVE A LOOK ALL JUMPED ON PLANES WITHIN A WEEK AND WE'VE BEEN INUNDATED MR BARGE SAYS BEFORE NEWS OF THE CITY'S VICTORY THE INDUSTRY GENERALLY EXPECTED PRICES OF SYDNEY HOTELS TO CONTINUE TO DROP FOR ANOTHER YEAR AT LEAST HE ADDS BUT THE OLYMPICS SEEM TO HAVE TURNED THAT SENTIMENT AROUND WHETHER IT SHOULD OR NOT DOESN'T HAVE ANYTHING TO DO WITH IT ADDS MR BARGE IN MY OPINION IT SHOULDN'T HAVE BUT PSYCHOLOGICALLY IT HAD THE EFFECT OF PUTTING A FLOOR UNDER PRICES TICKET HUNTERS TOO HAVE BEEN OUT IN FORCE PROMPTING SYDNEY TO SET UP AN OLYMPICS HOTLINE 612 2472000 TO HANDLE INQUIRIES HOWEVER SYDNEY OLYMPICS 2000 OFFICIALS SAY THEY CAN'T SELL ANY TICKETS UNTIL ABOUT 18 TO 24 MONTHS BEFORE THE GAMES ANY CHANCE OF RESERVING A COUPLE OF TICKETS ABSOLUTELY NOT AN OLYMPICS SPOKESMAN SAYS PRICES THOUGH ARE MORE OR LESS SET THE OLYMPICS BUDGET BASED ON 1992 AUSTRALIAN DOLLARS CALLS FOR TICKETS TO PRELIMINARY EVENTS TO COST A12 TO A15 EACH ABOUT THE SAME AS A MOVIE TICKET FINAL EVENTS WILL BE THE EQUIVALENT OF A60 TO A70 ABOUT THE CURRENT COST OF A ROCK CONCERT TICKET AND ADMISSIONS TO THE OPENING AND CLOSING CEREMONIES ARE LIKELY TO COST A150 TO A250 A SPOKESMAN SAYS QANTAS AIRWAYS IS LOOKING TO CASH IN TOO IN ADDITION TO FLIGHTS TO AND AROUND AUSTRALIA THE AIRLINE EXPECTS SOME OF THE VISITORS' ITINERARIES TO SPILL OVER INTO THE SURROUNDING REGION EVERYBODY IN THE REGION PARTICULARLY THE SOUTHEAST ASIA AND THE SOUTH WESTFIC WILL BE A MAJOR BENEFICIARY SAYS BRIAN KIRKHAM QANTAS'S INBOUND TOURISM MANAGER DESPITE ITS ENTHUSIASM FOR THE GAMES HOWEVER QANTAS ISN'T YET BOOKING SEATS 9310150090 931015 COMMODITIES PRECIOUSMETALS PRICES FALL IN VOLATILE TRADING AS NEW DATA SHOW WEAK INFLATIONARY PRESSURES BY WARREN GETLER STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK FRESH ECONOMIC DATA SHOWING WEAK INFLATIONARY PRESSURES HELPED PUSH PRECIOUSMETALS PRICES LOWER IN VOLATILE MOSTLY TECHNICAL TRADING DEALERS SAID GOLD A TRADITIONAL HEDGE AGAINST INFLATION SLIPPED 1 TO 36660 AN OUNCE FOR DECEMBER DELIVERY SILVER FOR DECEMBER DELIVERY GAVE UP 85 CENTS TO SETTLE AT 4348 AN OUNCE THE RETREAT OF PRECIOUSMETALS PRICES ON NEW YORK'S COMMODITY EXCHANGE CAME AMID THE RELEASE OF ECONOMIC DATA THAT INCLUDED A BENIGN 02 RISE IN THE SEPTEMBER PRODUCERPRICE INDEX AND A 01 DECLINE IN SEPTEMBER RETAIL SALES THOSE FIGURES CONFIRMED THAT INFLATION HAS LITTLE ROLE TO PLAY IN THE CURRENT SLOWGROWTH ECONOMY THERE'S NOTHING FUNDAMENTALLY THAT SUGGESTS INFLATION IS PICKING UP OR THAT PRECIOUS METALS SHOULD GO HIGHER AS A RESULT OF INFLATION FEARS SAID SCOTT MEYERS A SENIOR COMMODITY ANALYST WITH REDEL TRADING IN NEW YORK MR MEYERS SAID THAT THE RECENT RISE IN GOLD AND SILVER FUTURES PRICES HAS BEEN PRIMARILY THE RESULT OF TECHNICAL FACTORS SPECULATIVE BETS BASED ON HISTORIC PRICE PATTERNS WHILE DECEMBER GOLD MAY BE POISED FOR A TECHNICAL BOUNCE TO LEVELS ABOVE 375 THE KEY TO FUTURE TRADING IN THE MARKET THE REDEL ANALYST SAID IS STAYING NIMBLE IN EITHER DIRECTION THIS IS A TRADER'S MARKET YOU DON'T WANT TO GET TOO INVOLVED IN ONE DIRECTION HE CAUTIONED AT THIS STAGE YOU CAN BE BULLISH BUT YOU CAN'T CALL THIS A BULL MARKET HE SAID WE'RE REALLY CAUGHT IN A SITUATION WHERE THE PATTERN LOOKS GOOD ON PAPER BUT WE'RE NOT GETTING ANY SUSTAINED FOLLOWTHROUGH INDEED TRADERS SAID GOLD HAD RALLIED EARLY YESTERDAY IN NEW YORK SPURTING TO A RECENT HIGH OF 37050 IN THE ACTIVE DECEMBER CONTRACT BUT WHEN NO FURTHER BUYING EMERGED THE YELLOW METAL ULTIMATELY PULLED BACK A DOLLAR ANALYSTS WHO TRACK THE MARKET ON THE BASIS OF SUPPLYANDDEMAND FUNDAMENTALS SAY THAT GOLD SEEMS TO BE TRADING IN A BROAD 360370 RANGE THE MARKET HAS BEEN EDGING UP FOR MONTHS NOW IT'S HARDLY HAD A SETBACK SINCE WE HIT THE LOW 340S IN MIDSEPTEMBER SAID IAN MACDONALD WHO RUNS THE PRECIOUS METALS DESK WITH CREDIT SUISSE OVERALL THE MARKET'S STILL VERY CONSTRUCTIVE BUT IT HAS A LOT OF WORK TO DO HE SAID CAUTIONING THERE WILL BE PROFITTAKING AS WE DEFINITELY SAW THURSDAY SOME ANALYSTS THINK GOLD WILL ATTEMPT BEFORE YEAR END TO REVISIT THE 400 LEVEL LAST SEEN IN EARLY AUGUST WHEN A MAJOR PRICE CORRECTION SET IN JOSEPH ROSTA RESEARCH DIRECTOR AT NEW YORKBASED PRECIOUS METALS CONSULTANTS CPM GROUP SAID DEMAND AMONG US ITALIAN AND INDIAN JEWELERS IS PICKING UP ROBUSTLY AND WILL PUSH GOLD STEADILY HIGHER OVER THE NEXT FEW WEEKS WE THINK GOLD WILL TEST 400 BY THE END OF THE YEAR HE SAID OTHER ANALYSTS SUCH AS MERRILL LYNCH'S CHIEF FUTURES STRATEGIST WILLIAM O'NEILL TAKE EXCEPTION TO THAT BROADLY BULLISH VIEW NOTING THAT GOLD AND SILVER EXPERIENCED TECHNICAL AND OPTIONSRELATED RALLIES IN RECENT WEEKS MR O'NEILL CAUTIONED IN A RECENT REVIEW OF THE PRECIOUSMETALS MARKETS THAT THESE PAPER ADVANCES ARE UNLIKELY TO BE MAINTAINED AND PROBABLY REPRESENT SELLING OPPORTUNITIES HE CITED A LACK OF PHYSICAL INVESTMENT DEMAND PARTICULARLY FROM ASIA AS A KEY ELEMENT IN GOLD'S LACKLUSTER PERFORMANCE IN SEPTEMBER SEPTEMBER TAIWANESE GOLD IMPORTS FELL 213 VS LAST YEAR AND FOR THE FIRST NINE MONTHS OF 1993 IMPORTS FELL 24 HE NOTED IN OTHER COMMODITY MARKETS ENERGY CRUDEOIL AND PRODUCTFUTURES PRICES SETTLED MIXED YESTERDAY IN LACKLUSTER TRADING ONLY GASOLINE PRICES DISPLAYED ANY STRENGTH AS SOME TRADERS BOUGHT ON RUMORS THAT SUPPLIES ON THE EAST COAST MIGHT BE TIGHTENING WITH THE LACK OF OTHER MARKETMOVING NEWS THE MARKET WAS DRIVEN UPWARD EARLY IN THE SESSION ON RUMORS OF PROBLEMS IN IRANIAN PRODUCTION BUT WHEN THOSE RUMORS WENT UNSUBSTANTIATED PRICES DECLINED AGAIN PLAYERS SAID THEY ARE LOOKING TOWARD THE END OF THE MONTH WHEN THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES WOULD ISSUE OFFICIAL PRODUCTION FIGURES FOR OCTOBER THOSE NUMBERS WILL GIVE MORE OF A DIRECTION TO THE MARKET TRADERS SAID ALSO BEARISH FOR THE MARKET WAS A REPORT FROM THE OPEC SECRETARIAT STATING THAT DEMAND FOR THE ORGANIZATION'S CRUDE PRODUCTION AND INVENTORIES DURING THE FOURTH QUARTER HAD AGAIN BEEN REVISED DOWNWARD THE SECRETARIAT NOW PUTS FOURTHQUARTER DEMAND FOR OPEC CRUDE AND STOCKS AT 2542 MILLION BARRELS A DAY 580000 BARRELS A DAY LOWER THAN PREVIOUSLY ESTIMATED ORANGE JUICE FUTURES PRICES FOR DISTANT CONTRACTS FELL THEIR FIVECENT LIMIT AS THE MARKET CONTINUED TO DIGEST THE AGRICULTURE DEPARTMENT'S 199394 FLORIDA CROP REPORT THE REPORT RELEASED TUESDAY PROJECTED A LARGER CROP THAN SOME SPECULATORS HAD EXPECTED FORCING THEM TO LIQUIDATE THEIR LONG POSITIONS ON THE NEW YORK COTTON EXCHANGE ORANGE JUICE FOR JANUARY DELIVERY TUMBLED 5 CENTS TO 12095 CENTS A POUND BUT THE NEARBY CONTRACT JUICE FOR NOVEMBER DELIVERY GAINED 145 CENTS TO 11750 RECOUPING A FRACTION OF THE 1320 CENTSAPOUND LOSS ON WEDNESDAY ON WEDNESDAY THE NOVEMBER CONTRACT SKIDDED TO 11605 A POUND IN ITS LARGEST ONEDAY DROP IN THREE YEARS COPPER COPPER FUTURES WHICH HAVE SHOWN SOME UPWARD MOMENTUM ON MOSTLY TECHNICAL GROUNDS THIS WEEK GAVE BACK 150 CENTS A POUND ON THE DECEMBER CONTRACT TO SETTLE AT 7540 CENTS ON NEW YORK'S COMMODITY EXCHANGE TRADERS SAID THE DECLINE WAS BECAUSE OF SOME COMMODITYFUND SELLING IN NEW YORK AND SELLING BY COMMERCIAL USERS OF COPPER IN THE BIG LONDON MARKET THE BASE METAL HAS BEEN TRADING IN A FAIRLY NARROW RANGE BETWEEN 74 CENTS AND 78 CENTS A POUND AND SHOWS NO SIGNS OF BREAKING OUT DRAMATICALLY IN EITHER DIRECTION TRADERS SAID 9310150089 931015 BUSINESS BRIEF EURO DISNEY SCA FRENCH CONCERN WILL TRIM SOME PRICES AT THEME PARK EURO DISNEY SCA THE FRENCH AFFILIATE OF WALT DISNEY CO SAID IT IS PLANNING PRICE CUTS AT ITS THEME PARK OUTSIDE PARIS EURO DISNEY SAID THE PRICE CUTS WOULD PRINCIPALLY AFFECT ITS HOTELS IN JANUARY EURO DISNEY PLANS TO LOWER THE PRICE AT ITS LEAST EXPENSIVE HOTELS TO 350 FRANCS 62 A NIGHT FOR FOUR PEOPLE FROM 450 FRANCS HOTELS IN THE MEDIUM RANGE ALSO WILL CUT PRICES EURO DISNEY HAD A LOSS OF ROUGHLY 15 BILLION FRANCS IN THE FIRST NINE MONTHS OF THE FISCAL YEAR THAT ENDED SEPT 30 THE COMPANY'S STOCK HAS BEEN PLUMMETING ON THE PARIS BOURSE THIS WEEK AMID FEARS THAT THE FULLYEAR LOSS WAS WELL OVER TWO BILLION FRANCS THE PEAK SUMMER SEASON WAS MARKED BY UNUSUALLY BAD WEATHER IN PARIS AND HURT BY THE EUROPEAN RECESSION 9310150088 931015 SALE OF BILLIONAIRE MALCOLM FORBES ART TOPS ALL ESTIMATES ARABIAN ORIENTALIST' COLLECTION OWNED BY THE LATE MAGNATE FETCHES ALMOST 3 MILLION BY ALEXANDRA PEERS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK AUCTION FEVER STRUCK AT YESTERDAY'S SALE BY THE MALCOLM FORBES ESTATE OF LITTLEKNOWN PAINTINGS AND SCULPTURE FROM THE LATE BILLIONAIRE'S TANGIER PALACE IN THE FIRST SALE OF A GROUP OF WORKS FROM THE EXTENSIVE FORBES ART COLLECTION MANY OF THE ARTWORKS AUCTIONED AT CHRISTIE'S INTERNATIONAL PLC'S NEW YORK SALESROOM BROUGHT THREE TO FIVE TIMES THEIR EXPECTED PRICES BUT THIS ARTWORK WASN'T THE MILLIONDOLLAR FABERGE EGGS AND BLUECHIP OLD MASTERS THAT MR FORBES WAS RENOWN FOR COLLECTING THIS BLOWOUT SALE WAS OF LUSH SOMETIMES EROTIC PAINTINGS AND SCULPTURE FROM THE POPULAR 19THCENTURY ORIENTALIST MOVEMENT THESE WORKS BY OFTEN OBSCURE AMERICAN AND EUROPEAN ARTISTS DEPICTED EXOTIC ARABIAN AND NORTH AFRICAN LANDSCAPES THE KASBAH CAMELS SERVANTS IN TURBANS AND SUNSETS OVER CARAVANS THE WORKS HAD FILLED THE BILLIONAIRE'S PALACE IN PALACE MENDOUB TANGIER MOROCCO SITE OF HIS CELEBRITYSTUDDED 70TH BIRTHDAY PARTY IN 1990 THIS SALE OFFERED MALCOLM MEMORABILIA' SOME FUN CHEAP PAINTINGS AND SOME QUALITY WORKS SAID MARIACHRISTINA SAYNWITTGENSTEIN A NEW YORK ART DEALER SHE SPENT ABOUT 100000 ON BEHALF OF CLIENTS SOME OF WHOM HAD BEEN TO THE TANGIERS PALACE AND WERE LOOKING FOR SOUVENIRS SHE SAID AND SOME WHO ARE SERIOUS COLLECTORS OF ORIENTALIST ART FOR CHRISTIE'S WHICH KNEW THAT SUCCESS WITH THIS SLIVER OF THE FORBES COLLECTION MIGHT LATER WIN THE FIRM EVEN PRICIER OBJECTS FOR THE AUCTION BLOCK THE SALE WAS A MARKETING COUP THE COLLECTION WAS AGGRESSIVELY SOLD ON TUESDAY EVENING CHRISTIE'S THREW ONE OF ITS MOST OPULENT PARTIES COMPLETE WITH TURBANED STAFF TENTS ARABIAN CUISINE AND MOROCCAN MUSICIANS SINCE THE COLLAPSE OF THE ART MARKET IN 1989 THE AUCTION HOUSE ALSO HOSTED A RECEPTION AND LECTURE FOR THE DECAMILLIONAIRE CLIENTS OF CITICORP'S CITIBANK ART ADVISORY AND PRIVATE BANKING DIVISIONS THE RESULTS WERE TREMENDOUS PARTICULARLY FOR A SALE OF 402 PICTURES WITH ONE THEME SAID POLLY SARTORI CHRISTIE'S HEAD OF 19THCENTURY PAINTINGS AND MIGHT PRESAGE A KICKOFF OF A MARKET FOR ORIENTALIST PAINTINGS THE FORBES NAME REALLY DID BRING IN PEOPLE IT ADDS A LOT OF EXTRA APPEAL SAID ALICE DUNCAN HEAD OF CHRISTIE'S SCULPTURE DEPARTMENT AT THE SALE TWO DOZEN ENAMELED METAL LAMPS DEPICTING CAMELS HAREM OR MOSQUE SCENES EXPECTED TO BRING ABOUT 1200 TO 3500 EACH SOLD FOR AS MUCH AS 79500 INCLUDING CHRISTIE'S COMMISSION ESTIMATED TO BRING 12 MILLION TO 18 MILLION EUROPEAN COLLECTORS PAINTINGS DEALERS AND INTERIOR DECORATORS BID UP THE SALE TOTAL OF JUST UNDER 3 MILLION INCLUDING THE COMMISSION PAID TO CHRISTIE'S THE COMMISSION IS 15 ON THE FIRST 50000 AND 10 ON THE REMAINDER OF THE PURCHASE PRICE 9310150087 931015 ROAD TO COMPLETION REMAINS BUMPY FOR EDSA TRANSIT SYSTEM IN MANILA BY REGINALD CHUA STAFF REPORTER OF THE WALL STREET JOURNAL MANILA MOVEMENT ON MANILA'S NEW MASS TRANSIT SYSTEM IS JERKY FREQUENTLY INTERRUPTED AND FULL OF LURCHING STOPS AND STARTS AND IT HASN'T EVEN BEEN BUILT AFTER THREE YEARS OF STOPANDGO PROGRESS AN INTERNATIONAL CONSORTIUM FINALLY MANEUVERED ITS 450 MILLION LIGHTRAIL PROPOSAL THROUGH THE MAZE OF BUREAUCRACY AND SIGNED A CONTRACT IN FEBRUARY BUT DESPITE THAT DOCUMENT AND ENTHUSIASTIC BACKING FROM PRESIDENT FIDEL RAMOS WHO CALLED IT A SYMBOL OF RENEWED WILL TO REBUILD THE COUNTRY'S CREAKY INFRASTRUCTURE THE REST OF THE JOURNEY PROMISES TO BE ANYTHING BUT SMOOTH FIVE MONTHS AFTER A GROUNDBREAKING CEREMONY IN MAY THE CONSORTIUM OF US EUROPEAN AND ISRAELI INTERESTS EDSA LRT CORP IS RUNNING INTO OPPOSITION FROM BUSINESSES HOMEOWNERS AND LEGISLATORS THIS IS ACTUALLY WHAT WE CALL THE C PROCESS THE DEMOCRATIC PROCESS WHERE EVERYONE IS ABLE TO SPEAK OUT SAYS MARIO MIRANDA A TRANSPORTATION DEPARTMENT SENIOR OFFICIAL WHO OVERSEES THE PROJECT INDEED THIS COUNTRY'S EXPERIENCE WITH OFFICIAL CORRUPTION HAS ENGENDERED SKEPTICISM ABOUT HOW GOVERNMENT CONTRACTS AND MONEY ARE HANDED OUT BUT THE SYSTEM'S TRIALS ALSO SHOW HOW SPECIAL INTERESTS AND POLITICIANS CAN DISRUPT PROJECTS EVEN AFTER THE OFFICIAL GOAHEAD IS GIVEN AND WORK IS BEGUN SO FAR THE CONSORTIUM HAS MERELY STARTED PRELIMINARY SITE AND SURVEY INSPECTIONS ON THE MUCHDELAYED PROJECT WHICH IT HOPES TO COMPLETE BY 1996 MANILA'S ONLY MASS TRANSIT ALTERNATIVE TO CAREENING BUSES AND STRETCHED JEEPS CALLED JEEPNEYS IS THE NINEYEAROLD LRT ONE A DILAPIDATED ELEVATED LINE THAT CARRIES HUNDREDS OF THOUSANDS OF JAMPACKED COMMUTERS DAILY ON ITS NORTHSOUTH ROUTE THAT'S WHERE THE EDSA LRT PROJECT COMES IN THE CONSORTIUM WHICH IS HEADED BY BRITISH BUSINESSMAN ELI LEVIN AND INCLUDES KAISER ENGINEERS INTERNATIONAL INC OF THE US THE BIAZZI GROUP OF SWITZERLAND AND PRIVATE CZECH AND ISRAELI INVESTORS PLANS TO BUILD LRT THREE A 178KILOMETER RAIL LINE ALONG THE CENTER OF THE EDSA HIGHWAY DESIGNED TO RUN MOSTLY AT GROUND LEVEL IT IS TO CARRY 400000 PEOPLE A DAY FROM ONE END OF THE CITY TO THE OTHER IN LESS THAN AN HOUR COMPARED WITH THREE TO FIVE HOURS BY BUS UNDER THE CONTRACT THE GOVERNMENT WOULDN'T HAVE TO PAY ANYTHING UP FRONT ALTHOUGH IT WOULD PROVIDE LAND FOR THE TERMINAL AND THE RIGHT OF WAY ALONG EPIFANIO DE LOS SANTOS AVENUE OR THE EDSA MANILA WOULD LEASE THE LINE FOR 25 YEARS AT AN ANNUAL RENT THAT STARTS AT ABOUT 73 MILLION AND GRADUALLY DECLINES TO 36 MILLION THE GOVERNMENT WHICH WOULD RECOVER MONEY FROM FARES AND A SHARE OF RENTALS FROM COMMERCIAL DEVELOPMENT WOULD OWN THE LINE AFTER THE LEASE ENDS A FORMER JOURNALIST AND INFORMATION MINISTER UNDER PRESIDENT FERDINAND MARCOS SEN FRANCISCO TATAD SAYS THE GOVERNMENT IS BEING TAKEN FOR A RIDE AMONG ALLEGATIONS DETAILED BY MR TATAD IN A SPEECH ON THE SENATE FLOOR LAST MONTH ARE ACCUSATIONS THAT CONTRACT BIDDING WAS RIGGED THAT THE CONTRACT VIOLATES THE CONSTITUTION WHICH PROHIBITS FOREIGNERS FROM OWNING A PUBLIC UTILITY AND THAT PROJECTIONS OF GOVERNMENT INCOME FROM TRAIN FARES ARE UNREALISTIC IN A WRITTEN RESPONSE TO THE SENATOR MR LEVIN ARGUES THAT GOVERNMENT AGENCIES REVIEWED THE BIDDING AND FOUND IT VALID HE ALSO SAYS FOREIGN COMPANIES CAN PROVIDE PUBLIC UTILITY SERVICES TO THE GOVERNMENT WITHOUT VIOLATING THE CONSTITUTION ON INCOME FROM FARES MR LEVIN AGREES PROJECTIONS ARE UNREALISTIC BUT ARGUES THAT THEY ARE UNREALISTICALLY LOW THE MAKATI LRT THREE TASK FORCE OF RETAILERS BUSINESSMEN AND RESIDENTS FROM THE PRIME MAKATI BUSINESS DISTRICT WANTS THE LINE ELEVATED IN THEIR AREA THEY FIGURE STREETLEVEL TRACKS WILL BLOCK ACCESS TO MAKATI CAUSE TRAFFIC NIGHTMARES AND SPLIT THE DISTRICT REYNALDO ALEJANDRO A LAWYER WHO REPRESENTS RESIDENTS IN THE POSH FORBES PARK AREA NEAR THE PROJECT WANTS TO VETO THE PLANNED FOURSTORY SHOPPING ARCADE AT THE MAKATI STATION WHILE THE DEPARTMENT OF PUBLIC WORKS AND HIGHWAYS FEARS THE EDSA LRT DESIGN WILL CREATE TRAFFIC BOTTLENECKS AND THE NATIONAL HOUSING AUTHORITY ISN'T HAPPY THAT IT HAS TO HAND OVER SOME OF ITS LAND TO THE PROJECT MR LEVIN BLAMES RETAILERS WHO CONTROL THE MILLIONODD HECTARES OF SHOPPING SPACE ALONG THE EDSA FOR MUCH OF THE OPPOSITION EDSA LRT WILL ADD ANOTHER 400000 HECTARES OR 988000 ACRES OF RETAIL SPACE TO THE HIGHWAY THE PROJECT HAS HAD ITS SHARE OF DELAYS ALTHOUGH A PRELIMINARY CONTRACT WAS SIGNED IN JUNE 1990 A NEW LAW REQUIRING THAT THE PROJECT BE REOFFERED FOR PUBLIC TENDER AND AN INVESTIGATION INTO THE BIDDING PROCESS CAUSED DELAYS BY MARCH 1992 THE THIRD CONTRACT WAS SIGNED ONLY TO BE SUSPENDED FOR REVIEW WHEN PRESIDENT RAMOS CAME TO POWER THREE MONTHS LATER THE PRESIDENT APPEARS TO HAVE PUSHED HIS OFFICIALS TO COME TO TERMS QUICKLY WITH THE CONSORTIUM BUT IT STILL TOOK NEARLY ANOTHER YEAR BEFORE DETAILS WERE IRONED OUT 9310150086 931015 THE AMERICAS WHAT THE CIA AND ARISTIDE SHOULD KNOW ABOUT HAITI BY MICHEL S LAGUERRE CURRENT POLICY ANALYSES OF HAITI DISPLAY A REMARKABLY HIGH DEGREE OF IGNORANCE ABOUT THE MOST CRITICAL FACTOR IN ALL HAITIAN POWER STRUGGLES THE ROLE PLAYED BY THE MILITARY AND THE POLICE A COMBINATION OF WHICH WAS BEHIND THE EXPULSION THIS WEEK OF US AND UNITED NATIONS FORCES PERHAPS THE BEST WAY OF UNDERSTANDING WHAT GENERATES THE MILITARY'S POWER BASE IN HAITI IS BY FOLLOWING THEIR ROLE AS GATEKEEPERS OF VARIOUS LEVELS OF CORRUPTION WITHIN THE SOCIETY WHAT WE CALL CORRUPTION IN THE US IS NOT ALWAYS PERCEIVED AS SUCH BY THE SUBCULTURE OF THE ARMY THIS DIFFERENCE IN PERCEPTION REQUIRES US TO VIEW MILITARY CORRUPTION WITHIN THE CONTEXT OF THE OFFICER'S ENTREPRENEURIAL ACTIVITIES TO SEE HOW COMMUNITY VALUES FOSTER OR INHIBIT THAT CORRUPTION CASE 1 A SUBDISTRICT IN THE NORTHEASTERN DEPARTMENT AN OFFICER IN CHARGE OF THIS SUBDISTRICT DEVELOPED A FARM NEAR THE VILLAGE WHERE THE BARRACKS ARE LOCATED IN THE HOPE OF GAINING ADDITIONAL INCOME BEYOND THE MONTHLY SALARY HE EARNS FROM THE ARMY THIS IS VERY COMMON AMONG OFFICERS ASSIGNED TO MILITARY POSTS OUTSIDE OF THE MAIN CITIES THE OFFICER'S EXTRA INCOME IS MADE POSSIBLE BECAUSE OF HIS POWER OVER THE CIVILIAN POPULATION AS A MILITARY OFFICER AND AS A POLICE OFFICER RESPONSIBLE FOR THE PRISON IN HIS SUBDISTRICT THE OFFICER USES HIS POSITION IN THE VILLAGE TO GET FREE LABOR FOR HIS FARM PRISONERS UNDER HIS CUSTODY ARE SOMETIMES BROUGHT TO HIS FARM TO WORK WHAT DO THEY GET IN RETURN NOT MUCH SINCE THEY ARE IN JAIL AND THE OFFICER IS IN CHARGE OF THE JAIL THERE ARE NOT MANY CHOICES FOR THEM OTHER THAN TO DO WHAT IS ORDERED THE OFFICER'S OTHER ALTERNATIVE FOR FARM LABOR IS TO ASK THE CHEFDESECTION RURAL POLICE TO ASSEMBLE A GROUP OF WORKERS FOR HIM THOSE WORKERS WHO SEEK THE PROTECTION OF THE RURAL POLICE CHIEF DO NOT HAVE ANY CHOICE OTHER THAN TO ACQUIESCE TO THE INVITATION THEY PROVIDE FREE LABOR AND IN SO DOING ENHANCE THE STATUS OF THE CHIEF OF SECTION AS A LEADER IN HIS COMMUNITY KEEP HIM IN THE GOOD GRACES OF THE MILITARY OFFICER ON WHOM HE DEPENDS AND REINFORCE THE RELATIONS BETWEEN THE OFFICER AND THE LOCAL CIVILIAN POPULATION TO PLANT HIS FARM SEEDS AND PLANTS ARE GIVEN TO HIM EITHER BY THE PEASANTS THEMSELVES BY HIS FRIENDS WHO ARE BIG LANDOWNERS OR BY ILLEGAL DOMINICAN IMMIGRANTS IF HE HAPPENS TO BE POSTED IN A BORDER TOWN DOMINICAN TRADERS WHO CROSS THE BORDER ILLEGALLY PROVIDE HIM WITH THOSE SEEDS AND IN RETURN ARE PROTECTED FROM ARREST AND INCARCERATION EVEN THE USE OF THE FARMLAND IS OFTEN GRANTED TO HIM FOR FREE THROUGH HIS CONNECTION WITH THE LOCAL BUREAU DES CONTRIBUTIONS AKIN TO THE INTERNAL REVENUE SERVICE WHICH SUPERVISES THE SELLING AND RENTING OF LOCAL STATEOWNED LAND THE LOCAL ADMINISTRATOR ENGAGED IN CORRUPT PRACTICES MAY PROVIDE LAND TO AN OFFICER RENTFREE BECAUSE THIS BECOMES A WAY OF BUYING PROTECTION FOR HIMSELF FROM THE MILITARY ESTABLISHMENT CASE 2 A MILITARY DISTRICT IN THE NORTHWEST THIS DISTRICT'S MILITARY HEADQUARTERS IS LOCATED IN A COASTAL CITY WHERE CONTRABAND GOODS ARE OFTEN UNLOADED THE OFFICER IS ABLE TO ACQUIRE A CERTAIN PERCENTAGE OF PROFITS FROM ANY DEALS MADE BY THE CONTRABANDISTS IN RETURN HE PROTECTS THEM AND LETS THEM OPERATE WITHOUT INTERFERING IN THEIR ILLEGAL BUSINESS ACTIVITIES FROM THE CONTRABANDISTS THE OFFICER RECEIVES EITHER OUTRIGHT CASH OR MERCHANDISE THROUGH THAT SCHEME THE OFFICER DEVELOPED A COMMERCE WITHIN THE BARRACKS THAT LASTED SIX MONTHS HE SOLD USACQUIRED MERCHANDISE TO THE SOLDIERS MOSTLY CLOTHES AND FOODSTUFF THE BARRACKS SERVED AS A STORAGE PLACE FOR THESE GOODS AND A MARKETPLACE WHERE HE SOLD THEM EVEN IN BROAD DAYLIGHT WHEN THE LOCAL CIVILIAN POPULATION STARTED TALKING ABOUT IT IN A NEGATIVE MANNER HE STOPPED USING THE BARRACKS TO CARRY OUT HIS BUSINESS HIS NEXT SCHEME INVOLVED THE SALE OF CHICKEN LEGS THESE WERE US PRODUCTS ACQUIRED THROUGH A CONTACT WHO CONTROLLED A CONTRABAND RACKET IN THE CITY THE CONTACT SERVED AS AN ASSOCIATE AND THEY SHARED BETWEEN THEMSELVES THE OFFICER WAS ABLE TO MAINTAIN THAT BUSINESS FOR A LONG PERIOD OF TIME UNTIL HE WAS TRANSFERRED TO ANOTHER CITY CASE 3 THE OFFICEROWNER OF A MULTIPURPOSE STORE THIS CASE CONCERNS AN OFFICER STATIONED IN PORTAUPRINCE HE DEVELOPED A TEXTILE STORE TO WHICH HE ADDED OTHER PRODUCTS THAT ARE MUCH IN DEMAND IN TOWN SINCE HE CANNOT BE IN THE STORE ALL DAY HIS WIFE SERVES AS A MANAGER AND BOOKKEEPER FOR THE STORE HE IS ALWAYS ANXIOUS TO LET PEOPLE KNOW THAT THE STORE IS HIS WIFE'S VENTURE NEVERTHELESS WHEN HE IS NOT ON DUTY AT THE BARRACKS HE IS OFTEN SEEN AT THE STORE BECAUSE HE IS AN OFFICER AND BECAUSE OF HIS CONTACTS AT THE BUREAU DES CONTRIBUTIONS HE PAYS NO ANNUAL TAXES FOR THE BUILDING AND THE BUSINESS ALSO BECAUSE OF HIS CONTACTS AT THE CUSTOMS HOUSE HE PAYS NO IMPORT TAXES ON THE MERCHANDISE THAT HIS WIFE PURCHASES ABROAD WHILE MOST MERCHANTS HAVE TO WAIT FOR THE GOODS TO CLEAR CUSTOMS BEFORE THEY CAN HAVE ACCESS TO THEIR IMPORTED MERCHANDISE THIS OFFICER COMES IN GETS WHAT HE WANTS AND GOES BACK TO THE STORE HIS WIFE MAKES A GOOD PROFIT NOT SIMPLY BECAUSE THEY DO NOT PAY THE EXORBITANT TAXES THAT ARE FORCED ON OTHER MERCHANTS BUT BECAUSE CLIENTS PAY THEIR DEBTS MUCH QUICKER THAN NORMAL FOR FEAR THAT THEY MIGHT END UP IN JAIL IF THEY DEFAULT SOME CLIENTS BUY FROM THE STORE SIMPLY TO BE IN THE GOOD GRACES OF THE OFFICER THEY FIGURE THAT THEY MIGHT NEED HIS HELP AND HIS PROTECTION IF THEIR DAILY LIVES TURN SOUR POLITICALLY OR OTHERWISE THE COMMON ELEMENT IN ALL THREE EXAMPLES IS THE SYSTEM OF OVERREGULATION AND TAXES THAT PROHIBIT INDIVIDUALS FROM CONDUCTING BUSINESS UNLESS THEY PAY BRIBES OR ARE THEMSELVES IN POSITIONS OF BYPASSING THE EXCESSIVE REGULATORY STRUCTURE BY LOWERING OR ELIMINATING THE REGULATIONS AND EXTORTIONIST TAXES TO A LEVEL WHERE AVOIDANCE COSTS ARE GREATER THAN THE COSTS OF COMPLYING WITH THEM THE RAISON D'ETRE FOR MOST SOURCES OF ECONOMIC CORRUPTION AND COERCION WOULD BE ELIMINATED THERE ARE TWO WAYS THAT RETURNING PRESIDENT JEANBERTRAND ARISTIDE COULD DEAL WITH THE CORRUPT SOCIOECONOMIC ENVIRONMENT THAT FEEDS HAITI'S DESTRUCTIVE MILITARY MACHINE 1 CONFRONTATION BY THROWING IN JAIL ALL THOSE WHO DEAL IN CONTRABAND OR TAX EVASION 2 ECONOMIC RESTRUCTURING BY ANNOUNCING A DRAMATIC DEREGULATORY PROGRAM THAT WOULD UNDERCUT BOTH THE ROUTE OF ENTREPRENEURIAL CORRUPTION AND THE SOURCE OF POWER THAT THE MILITARY USES TO MANIPULATE ECONOMIC AND SOCIAL EVENTS IN HAITIAN SOCIETY CLEARLY THE LATTER STRATEGY WOULD BE MORE LIKELY TO DECREASE TENSION AND EVEN HELP LEAD TO ECONOMIC DEVELOPMENT MR LAGUERRE IS A PROFESSOR OF SOCIAL ANTHROPOLOGY IN THE AFRICANAMERICAN STUDIES DEPARTMENT AT THE UNIVERSITY OF CALIFORNIA AT BERKELEY AND THE AUTHOR OF THE MILITARY AND SOCIETY IN HAITI UNIVERSITY OF TENNESSEE PRESS 9310150085 931015 PACIFIC SCIENTIFIC'S THIRDQUARTER NET WILL TOP ANALYSTS' ESTIMATES CHIEF SAYS BY BENJAMIN A HOLDEN STAFF REPORTER OF THE WALL STREET JOURNAL NEWPORT BEACH CALIF PACIFIC SCIENTIFIC CO WILL REPORT THIRDQUARTER NET INCOME OF SOMEWHERE BETWEEN 35 AND 40 CENTS A SHARE SAID EDGAR S BROWER THE COMPANY'S CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OFFICER MR BROWER STRESSED IN AN INTERVIEW THAT EARNINGS OF THE COMPANY WHICH MAKES ELECTRIC MOTORS AND CONTROLS WILL BE IN EXCESS OF ANALYSTS' PREDICTIONS OF ABOUT 35 CENTS A SHARE THIRDQUARTER RESULTS ARE SCHEDULED TO BE REPORTED MONDAY FOR THE PERIOD ENDED SEPT 24 THE COMPANY EARNED 15 MILLION OR 27 CENTS A SHARE IN THE YEAREARLIER QUARTER SHARES OF PACIFIC SCIENTIFIC YESTERDAY ROSE 50 CENTS TO 1775 IN LATE TRADING ON THE NEW YORK STOCK EXCHANGE MR BROWER SAID SALES FOR THE QUARTER WOULD BE IN THE 48 MILLION RANGE UP FROM 421 MILLION A YEAR EARLIER AN INCREASE OF ABOUT 14 THE CHIEF EXECUTIVE ALSO SAID BOOKINGS FOR THE FOURTH QUARTER ARE UP AND STRONG WHICH MEANS OUR SALES ARE GOING TO CONTINUE TO BE STRONG THIS GIVES US VERY STRONG SALES GOING INTO THE FOURTH QUARTER IN FACT WE EXPECT RECORD SALES HE SAID A YEAR AGO THE COMPANY REPORTED FOURTHQUARTER SALES OF 462 MILLION FOR THE QUARTER ANALYSTS HAVE ESTIMATED FOURTHQUARTER EARNINGS FOR PACIFIC SCIENTIFIC AT ABOUT 39 CENTS A SHARE MR BROWER SAID ADDING THAT HE IS VERY COMFORTABLE WITH THAT NUMBER IN THE YEARAGO PERIOD THE COMPANY EARNED 16 MILLION OR 30 CENTS A SHARE HE IS ALSO COMFORTABLE HE SAID WITH ANALYSTS' SALES ESTIMATES OF 225 MILLION FOR NEXT YEAR WE'RE LOOKING AT GOOD STRONG CONTINUED GROWTH AND PROFIT PERFORMANCE HE SAID ALTHOUGH HE DIDN'T PROJECT EARNINGS IN ALL OF 1992 PACIFIC SCIENTIFIC HAD NET OF 54 MILLION OR 1 A SHARE ON SALES OF 1727 MILLION MR BROWER SAID THE COMPANY'S MAIN THRUST IS ITS MOTORS AND CONTROLS DIVISION HE SAID HE EXPECTS STRONG GROWTH IN THE AREA IN EXCESS OF 2030 WE'RE VERY STRONG IN THAT INDUSTRY AND ARE CONSIDERED THE LEADERS WE HAVE THE BROADEST PRODUCT LINE HE SAID A RECENT ACQUISITION GIVES THE COMPANY THE ABILITY TO MANUFACTURE 600 HORSEPOWER MOTORS WHEREAS PREVIOUSLY THE COMPANY FOCUSED ON 20 HORSEPOWER MOTORS THE NEW CAPABILITY INCREASES MARKETSHARE OPPORTUNITIES FOR THE COMPANY MR BROWER SAID PACIFIC SCIENTIFIC DOES JUST UNDER 20 OF ITS BUSINESS OFFSHORE AND HAS BEEN INCREASING THE EMPHASIS ON OFFSHORE SALES FOR ABOUT THE LAST YEAR HE SAID HE SAID THE COMPANY'S GOAL IS TO GET ABOUT 25 IN OFFSHORE INVOLVEMENT OVER THE NEXT THREE YEARS FOCUSING PRIMARILY ON EUROPE AND ASIA HE SAID HIS COMPANY IS POISED TO TAKE ON ITS JAPANESE COMPETITORS IN THE ROBOTICS MARKET THE JAPANESE HAVE FOCUSED ON THE MARKET BY PRODUCING STANDARD PRODUCTS IN BATCHES OF 10000 UNITS OR MORE HE SAID BUT PACIFIC SCIENTIFIC IS MUCH MORE FLEXIBLE OFFERING MORE CUSTOMIZED SERVICE HE SAID WE CAN GIVE THE ROBOTICS INDUSTRY A PROTOTYPE IN 24 HOURS HE SAID THEN PUSH THE BUTTON AND GIVE THEM 10000 MORE IN TWO TO FOUR WEEKS 9310150084 931015 TECHNOLOGY BRIEF CRAY COMPUTER CORP COMPANY PROTESTS AWARD OF 14 MILLION JOB TO RIVAL CRAY COMPUTER CORP SAID IT IS PROTESTING THE AWARD OF A 14 MILLION SUPERCOMPUTER CONTRACT TO CRAY RESEARCH INC FROM WHICH IT WAS SPUN OFF CRAY COMPUTER IS HEADED BY SEYMOUR CRAY THE SUPERCOMPUTER PIONEER WHO FOUNDED BOTH SUPERCOMPUTER MAKERS CRAY COMPUTER SAID THE DEFENSE NUCLEAR AGENCY INFORMED IT LAST WEEK THAT IT HAD AWARDED TO CRAY RESEARCH THE CONTRACT FOR A SUPERCOMPUTER TO BE INSTALLED AT LOS ALAMOS NATIONAL LABORATORY IN NEW MEXICO THE CONTRACT LOSS AND PROTEST WAS FIRST DISCLOSED BY HIGH PERFORMANCE COMPUTING A WASHINGTONBASED NEWSLETTER CRAY COMPUTER HAS YET TO SELL A COMPUTER THE LOS ALAMOS COMPUTER WAS CONSIDERED ONE OF ITS BRIGHTEST PROSPECTS DESPITE THE PROTEST TERRY WILLKOM PRESIDENT OF CRAY COMPUTER SAID THAT THE COMPANY HAD RAISED 30 MILLION IN JUNE AND IS PURSUING ADDITIONAL FINANCING HE SAID OUR CASH IN THE BANK WILL TAKE US INTO THE SECOND QUARTER NEXT YEAR 9310150083 931015 PHONE FIRMS SEEN CONTINUING MODEST RESULTS RISE IN OPERATING PROFITS WON'T REFLECT FRENZY OF INTERACTIVITY DEALS BY GAUTAM NAIK STAFF REPORTER OF THE WALL STREET JOURNAL THE HUMDRUM OPERATING RESULTS POSTED IN RECENT QUARTERS BY THE BABY BELLS AREN'T LIKELY TO CHANGE FOR THE THIRD QUARTER IN CONTRAST TO THE EXCITEMENT STIRRED BY SOME PHONE COMPANIES' PELLMELL RUSH TOWARD OFFERING INTERACTIVE VIDEO AND CABLE SERVICES ANALYSTS EXPECT THE SEVEN BABY BELLS AND GTE CORP TO POST A 5 TO 6 INCREASE IN OPERATING EARNINGS FOR THE THIRD QUARTER PARTLY REFLECTING COSTCUTTING EFFORTS IN THE FACE OF A SLUGGISH ECONOMY SOME ANALYSTS HAD EXPECTED THAT A REBOUND BEGINNING IN THE SECOND HALF OF THE YEAR WOULD BOOST EARNINGS GROWTH BUT THE ECONOMY SO FAR HAS REMAINED SLUGGISH THE PHONE COMPANIES' EARNINGS ARE LESS IMPORTANT NOW AND WILL BE LOST IN THE FLURRY OF ALLIANCES NOTES LINDA MELTZER AN ANALYST AT UBS SECURITIES OTHER INDUSTRY WATCHERS PREDICT THAT IN THEIR HUNGER FOR A CHUNK OF THE CABLE ENTERTAINMENT AND MULTIMEDIA BUSINESSES SEVERAL PHONE COMPANIES WILL BE MAKING MULTIBILLIONDOLLAR INVESTMENTS WHICH COULD AFFECT FUTURE EARNINGS GROWTH FOR NOW HOWEVER THE BABY BELLS AND GTE HAVE TO BE CONTENT WITH RACKING UP MODEST REVENUE AND PROFIT INCREASES IN THE FACE OF A PLODDING ECONOMY AMERITECH BELL ATLANTIC CORP SOUTHWESTERN BELL CORP AND GTE ARE EXPECTED TO REPORT THE STRONGEST OPERATING EARNINGS ACCORDING TO CHARLES SCHELKE AN ANALYST AT SMITH BARNEY SHEARSON UNLIKE THE OTHER COMPANIES THEIR REGIONAL ECONOMIES ARE RECOVERING PRETTY WELL AND NONE OF THEM HAVE STARTUP BUSINESSES WHICH COULD BE A DRAG ON EARNINGS MS MELTZER SAID THAT ACCESSLINE GROWTH A GOOD BAROMETER FOR BUSINESS IMPROVEMENT IS EXPECTED TO BE A MODEST 29 SHE NOTED HOWEVER THAT MONTHLY REVENUE GROWTH FOR THE PHONE COMPANIES HAS STABILIZED AND IS NOT SLOWING AT THE PACE IT WAS A YEAR AGO THE BELLS AND GTE ARE BECOMING MORE AGGRESSIVE ABOUT WINNING NEW CUSTOMERS AND HAVE DEVISED BETTER MARKETING PLANS SHE SAID MR SCHELKE BELIEVES THAT COMPETITIVE PRICING PRESSURES COULD AFFECT PHONE COMPANIES' REVENUES ALTHOUGH FUTURE GROWTH WILL BE HELPED BY THEIR SOARING CELLULAR BUSINESSES MS MELTZER ALSO EXPECTS MOST COMPANIES TO TAKE A RETROACTIVE CHARGE FOR HIGHER TAX RATES DUE TO PRESIDENT CLINTON'S TAX PACKAGE ON AVERAGE THEY WILL SEE THEIR TAX RATE GO UP BY ONE OR TWO PERCENTAGE POINTS SHE SAID ACCORDING TO ANALYSTS' ESTIMATES COMPILED BY FIRST CALL WHICH TRACKS ANALYSTS' FORECASTS AMERITECH BASED IN CHICAGO IS EXPECTED TO POST EARNINGS OF 131 A SHARE IN THE THIRD QUARTER UP FROM 123 IN THE YEAREARLIER PERIOD BELL ATLANTIC PHILADELPHIA IS EXPECTED TO REPORT EARNINGS OF 86 CENTS A SHARE COMPARED WITH 82 CENTS THE YEAREARLIER FIGURE EXCLUDES A GAIN OF EIGHT CENTS A SHARE FROM THE SALE OF A NONOPERATING INVESTMENT SOUTHWESTERN BELL SAN ANTONIO TEXAS IS EXPECTED TO REPORT EARNINGS OF 70 CENTS A SHARE INCLUDING A RESTRUCTURING CHARGE OF EIGHT CENTS A SHARE BUT EXCLUDING A DEBTREFINANCING CHARGE OF THREE CENTS A SHARE COMPARED WITH 68 CENTS THE YEAREARLIER FIGURE DOESN'T INCLUDE A CHARGE OF FOUR CENTS A SHARE FOR RELOCATING THE COMPANY'S HEADQUARTERS TO SAN ANTONIO GTE BASED IN STAMFORD CONN HAS TAKEN AGGRESSIVE STEPS TO CONTROL LABOR COSTS AND IS EXPECTED TO REPORT EARNINGS OF 57 CENTS A SHARE UP FROM 52 CENTS THE 1993 QUARTER EXCLUDES A 10 CENTPERSHARE DEBTRETIREMENT CHARGE WHILE THE 1992 THIRD QUARTER INCLUDES THE EFFECT OF A CHARGE OF THREE CENTS A SHARE FOR ACCOUNTING CHANGES RESULTS OF PACIFIC TELESIS GROUP BASED IN SAN FRANCISCO REMAIN MIRED IN CALIFORNIA'S MORIBUND ECONOMY WITH EARNINGS EXPECTED TO RISE SLIGHTLY TO 71 CENTS A SHARE FROM 70 CENTS NYNEX CORP NEW YORK HAS ALSO PUSHED TO REIN IN LABOR COSTS AND IS EXPECTED TO REPORT A PROFIT OF 82 CENTS A SHARE UP FROM 78 CENTS A SHARE BELLSOUTH IS EXPECTED TO REPORT EARNINGS OF 88 CENTS A SHARE NOT INCLUDING A CHARGE OF TWO CENTS A SHARE FOR BOND REFINANCING AND EIGHT CENTS A SHARE FOR NEW TAXES UP FROM 78 CENTS THE 1992 QUARTER EXCLUDES A CHARGE OF EIGHT CENTS A SHARE FOR BOND REFINANCING AND U S WEST INC ENGLEWOOD COLO IS EXPECTED TO REPORT EARNINGS OF 72 CENTS A SHARE UP FROM 65 CENTS A SHARE ALTHOUGH THE 1993 QUARTER DOESN'T REFLECT A CHARGE OF 907 A SHARE FOR TELEPHONEPLANT DEPRECIATION AND WORKFORCE REDUCTIONS 9310150082 931015 AFTER ROBUST FIGHT OVER PAL STAKE INVESTOR LUCIO TAN CONSIDERS SELLING BY REGINALD CHUA STAFF REPORTER OF THE WALL STREET JOURNAL MANILA A TWOMONTH BATTLE BETWEEN LUCIO TAN AND ANTONIO COJUANGCO JR FOR CONTROL OF A STAKE IN PHILIPPINE AIRLINES INC ENDED THIS YEAR WITH MR TAN THE VICTOR NOW IT SEEMS HE WOULD LIKE TO UNLOAD HIS PRIZE ASSOCIATES OF MR TAN BELIEVED TO BE ONE OF THE COUNTRY'S RICHEST MEN SAY HE IS UNHAPPY SHARING CONTROL WITH THE GOVERNMENT AND WOULD LIKE TO SELL HIS PAL STAKE HOWEVER HE HASN'T BEEN ACTIVELY SEEKING A BUYER NOBODY REALLY WANTS TO BUY NOBODY WANTS TO MAKE A SERIOUS OFFER SAYS ONE OF MR TAN'S ASSOCIATES AT THE AIRLINE ADDING THAT MR TAN HAS DISCUSSED POSSIBLE SALES WITH BOTH LOCAL AND FOREIGN BUSINESSMEN MR TAN WAS OUT OF THE COUNTRY AND COULDN'T BE REACHED FOR COMMENT MR TAN PAID AN ESTIMATED FIVE BILLION PESOS 1721 MILLION FOR HIS STAKE AND ASSOCIATES SAY HE WOULD LIKE TO SELL IT FOR 15 TO 20 ABOVE THAT AMOUNT THE CONVOLUTED SHAREHOLDER STRUCTURE OF PAL IS ONE REASON POTENTIAL INVESTORS ARE WARY MR TAN WHOSE INTERESTS INCLUDE TOBACCO BANKING HOTELS AND HOG FARMING HOLDS A BARE MAJORITY IN PR HOLDINGS A CONSORTIUM THAT BOUGHT 67 OF PAL FROM THE GOVERNMENT FOR 369 MILLION LAST YEAR HIS STAKE IN PR HOLDINGS ACCOUNTS FOR A THIRD OF PAL'S EQUITY LESS THAN THE 47 THE GOVERNMENT CONTROLS HOWEVER THE GOVERNMENT'S STAKE IS SPLIT IT HOLDS A THIRD OF THE AIRLINE DIRECTLY AND THE REST THROUGH PR HOLDINGS GOVERNMENT HAS STRONG VOICE STILL THE GOVERNMENT'S HOLDINGS GIVE IT A STRONG SAY IN THE RUNNING OF THE AIRLINE PAL'S PRESIDENT AND CHAIRMAN FOR EXAMPLE IS FORMER AGRICULTURE SECRETARY CARLOS DOMINGUEZ WHO WAS ONE OF THE FIVE GOVERNMENT REPRESENTATIVES ON THE PREVIOUS PAL BOARD MR TAN HIMSELF IS JUST ONE OF TWO VICE CHAIRMEN ALONG WITH THE CENTRALBANK GOVERNOR GABRIEL SINGSON OFFICIALS WITH PAL SAY THERE HAVEN'T BEEN ANY SERIOUS DISPUTES BETWEEN MR TAN AND THE GOVERNMENT OVER THE RUNNING OF THE COMPANY HOWEVER IT'S A VERY DIFFICULT SITUATION SAYS A BOARD MEMBER CLOSE TO MR TAN HE DOESN'T REALLY HAVE CONTROL PEOPLE WHO WANT TO BUY HIS STAKE WILL ALSO HAVE THE SAME PROBLEM SOME GOVERNMENT OFFICIALS HAVE SUGGESTED DISMANTLING PR HOLDINGS TO ALLOW ITS CURRENT SHAREHOLDERS TO HOLD PAL SHARES DIRECTLY BUT MR TAN OPPOSES THE MOVE BECAUSE IT WOULD FURTHER DILUTE HIS INFLUENCE HIS APPROVAL WOULD BE NEEDED TO DISSOLVE THE HOLDING COMPANY MR TAN WHO WAS A CLOSE ASSOCIATE OF FORMER PHILIPPINE PRESIDENT FERDINAND MARCOS WAS BROUGHT INTO PR HOLDINGS BY MR COJUANGCO WHO LED THE CONSORTIUM WHEN IT BOUGHT PAL SHARES FROM THE GOVERNMENT IT ISN'T CLEAR WHY MR TAN WHO IN PREVIOUS DEALINGS HAS SHOWN A STRONG PREFERENCE FOR A LOW PROFILE AND GUARANTEED CONTROL INVESTED AS A MINORITY PLAYER IN A HIGHLY PUBLIC ENTERPRISE IN ANY CASE MR TAN'S ASSOCIATES SAY HE DECIDED TO CHALLENGE MR COJUANGCO FOR CONTROL OF PR HOLDINGS AFTER MR COJUANGCO ORDERED ABOUT 1 BILLION OF AIRCRAFT WITHOUT CONSULTING MR TAN AFTER A BITTER STRUGGLE MR TAN OBTAINED CONTROL OF PR HOLDINGS BY BUYING A STAKE HELD BY ANOTHER PARTY MR TAN'S ASSOCIATES SAY HE HAS BEEN WORKING TO ENSURE MORE CONTROL OVER THE AIRLINE'S SPENDING AND FINANCES HE WAS PERSONALLY INVOLVED IN RENEGOTIATING PAL'S ORDER FOR FOUR BOEING CO 747400 AIRLINERS HE ALSO STRONGLY OPPOSES AN ORDER FOR SIX AIRBUS INDUSTRIE A340 JETLINERS ON WHICH PAL HAS ALREADY PAID A 75 MILLION DEPOSIT AND BELIEVES THE AIRLINE SHOULD CONCENTRATE ON ASIAN AND TRANSPACIFIC BUSINESS RATHER THAN THE LONGHAUL MEDIUMTRAFFIC EUROPEAN ROUTES FOR WHICH THE A340S ARE SUITED THE AIRLINE IS CONSIDERING SCALING BACK ITS EUROPEAN OPERATIONS AND ALREADY HAS CUT BACK ON OVERSEAS OFFICES 9310150081 931015 SOUTHERN PACIFIC AUSTRALIAN FIRM COMPLETES REVAMP BY CRAIG S SMITH AND S KARENE WITCHER STAFF REPORTERS OF THE WALL STREET JOURNAL SOUTHERN PACIFIC CORP COMPLETED A FINANCIAL RESTRUCTURING REMOVING THE SPECTER OF RECEIVERSHIP THAT HAS HUNG OVER THE SYDNEY AUSTRALIABASED HOTELMANAGEMENT COMPANY FOR NEARLY A YEAR THE COMPANY WHICH MANAGES THE PARKROYAL TRAVELODGE AND CENTRA HOTEL CHAINS SAID IT RECENTLY COMPLETED THE RESTRUCTURING OF ITS SENIOR BANK DEBT AND SIGNED THE LAST OF A DOZEN DEALS REVISING TERMS UNDER WHICH IT MANAGES SOME OF THE HOTELS THE SENIOR BANK DEBT TOTALING ABOUT 80 MILLION AUSTRALIAN DOLLARS US53 MILLION IS OWED TO HONGKONG & SHANGHAI BANKING CORP THE RESTRUCTURING COST THE PRITZKER FAMILY OF CHICAGO WHICH CONTROLS SOUTHERN PACIFIC ABOUT A20 MILLION THOSE FUNDS WERE USED TO RENEGOTIATE THE VARIOUS LIABILITIES THAT WERE CAUSING PROBLEMS SAID TIM DI MATTINA SOUTHERN PACIFIC'S FINANCE DIRECTOR THE COMPANY PAID BETWEEN 60 CENTS AND 70 CENTS ON THE DOLLAR TO BUY OUT LEASES AND PERFORMANCE CONTRACTS SIGNED DURING THE TOURISM BOOM OF THE LATE 1980S THE PRITZKERS WHO ALSO MANAGE HYATT HOTELS BOUGHT CONTROL OF SOUTHERN PACIFIC IN 1988 SHORTLY BEFORE THE AUSTRALIAN ECONOMY TIPPED INTO A SEVERE RECESSION SOUTHERN PACIFIC IS THE LARGEST HOTELMANAGEMENT COMPANY IN THE ASIAPACIFIC REGION OPERATING MORE THAN 70 HOTELS BY 1992 ITS CASH FLOW HAD SHRUNK SO MUCH THAT IT WASN'T SUFFICIENT TO KEEP UP WITH INTEREST PAYMENTS ON THE LOAN AND ALSO MEET OBLIGATIONS TO HOTEL OWNERS UNDER A VARIETY OF EXPENSIVE LEASES AND PERFORMANCE GUARANTEES LATE LAST YEAR THE PRITZKERS STOPPED PAYING MANY OF THE OWNERS AND TOLD THEM THAT SOUTHERN PACIFIC WOULD GO INTO RECEIVERSHIP IF THEY DIDN'T RENEGOTIATE THEIR CONTRACTS THIS HIGHPRESSURE TACTIC EVIDENTLY WORKED THE BUILDING OWNERS WERE FORCED TO TAKE A HAIRCUT BUT THE VIEW THEY ALL TOOK IN THE END WAS THAT SOMETHING'S BETTER THAN NOTHING SAID MR DI MATTINA HE ADDED THAT NONE OF THE OWNERS CANCELED MANAGEMENT CONTRACTS WITH SOUTHERN PACIFIC DESPITE ENTICEMENTS FROM RIVALS THE NEGOTIATIONS BETWEEN SOUTHERN PACIFIC AND THE HOTEL OWNERS INVOLVED CONTRACTS THAT GUARANTEE THE OWNER A MINIMUM LEVEL OF PROFIT MOST OF THE OWNERS WITH RELATIVELY HIGH PROFIT GUARANTEES WERE QUICK TO SETTLE BUT THREE WERE SLOWER TO RENEGOTIATE THE CONTRACTS AMONG THEM SHIMIZU GROUP AND TOMEN DEVELOPMENT AUSTRALIA PTY OWNERS OF THE SYDNEY AIRPORT PARKROYAL GOT MORE THAN A7 MILLION OUT OF AN ESTIMATED A12 MILLION DUE THEM UNDER PERFORMANCE GUARANTEES ACCORDING TO A PRITZKER REPRESENTATIVE IN CHICAGO CRI LTD WHICH OWNS THE PARRAMATTA TRAVELODGE SETTLED FOR ABOUT A28 MILLION ON PERFORMANCE GUARANTEES ESTIMATED AT A4 MILLION WHITE PROPERTY DEVELOPMENTS LTD WHICH OWNS THE CANBERRA TRAVELODGE GOT ABOUT A75 MILLION OUT OF AN ESTIMATED A125 MILLION THE A80 MILLION FROM HONGKONG BANK ORIGINALLY DUE FOR REPAYMENT AT THE END OF AUGUST IS NOW DUE IN 1998 ALTHOUGH THE PRITZKER REPRESENTATIVE SAID THE BANK PROBABLY WILL BE REPAID IN FULL BEFORE THEN 9310150080 931015 CREDIT RATINGS ARROW ELECTRONICS INC MELVILLE NY STANDARD & POOR'S CORP RAISED THE RATING ON THIS ELECTRONICCOMPONENTS MAKER'S 125 MILLION SUBORDINATED DEBT TO DOUBLEBPLUS FROM SINGLEBPLUS REFLECTING THE COMPANY'S IMPROVED PROFITABILITY AND BALANCESHEET STRENGTH ARROW ELECTRONICS'S RATING HAS BEEN REMOVED FROM THE CREDITWATCH LIST WHERE IT WAS PLACED MAY 31 WITH POSITIVE IMPLICATIONS THE COMPANY'S IMPLIED SENIOR RATING OR THE RATING IT WOULD HAVE IF IT HAD SENIOR DEBT IS TRIPLEBMINUS FRUIT OF THE LOOM INC CHICAGO MOODY'S INVESTORS SERVICE INC RAISED ITS RATINGS ON FRUIT OF THE LOOM'S APPROXIMATELY 316 MILLION IN LONGTERM DEBT FOR THE SECOND TIME IN FOUR MONTHS THE RATING CONCERN CITED THE APPAREL MAKER'S STRONG EARNINGS AND CASH FLOW IMPROVING BALANCE SHEET AND CONTINUED COMMITMENT TO SOUND FINANCIAL POLICIES FRUIT OF THE LOOM'S MANAGEMENT HAS BEEN REDUCING LEVERAGE AND IMPROVING FINANCIAL PERFORMANCE DURING THE LAST SEVERAL YEARS MOODY'S NOTED BUT MOODY'S HAD RATED THE COMPANY'S DEBT TO REFLECT THE FACT THAT FRUIT OF THE LOOM HAD WANTED TO MAINTAIN FLEXIBILITY TO BORROW FUNDS OR PLEDGE ASSETS AT THE OPERATING COMPANY LEVEL IT SAID THAT POLICY EFFECTIVELY SUBORDINATED DEBTHOLDERS AT THE HOLDING COMPANY LEVEL FRUIT OF THE LOOM'S RECENT RESTRUCTURING OF ITS BANK AGREEMENT TO AN UNSECURED FACILITY FROM A SECURED ONE AND THE LANGUAGE AND COVENANTS IN ITS NEW INDENTURE REPRESENT A REDUCED RISK TO BONDHOLDERS MOODY'S SAID FRUIT OF THE LOOM'S 7 DEBENTURES DUE 2011 ORIGINALLY ISSUED BY NORTHWEST INDUSTRIES INC WERE RAISED TO BAA2 FROM BA1 THE COMPANY'S 7875 SENIOR NOTES DUE 1999 WERE BOOSTED TO BAA2 FROM BA2 NEWS CORP SYDNEY AUSTRALIA MOODY'S INVESTORS SERVICE INC RAISED THE CREDIT RATINGS ON SENIOR UNSECURED DEBT FOR SEVERAL OF THIS MEDIA CONCERN'S UNITS TO BA1 FROM BA2 ABOUT 46 BILLION IN LONGTERM DEBT WAS AFFECTED THE RATINGS AGENCY SAID THE MOVE REFLECTED EXPECTATIONS THAT NEW CORP'S OPERATING PERFORMANCE AND CASH FLOW WILL CONTINUE TO IMPROVE OVER THE INTERMEDIATE TERM CAUSING A GRADUAL REDUCTION IN DEBT LEVELS MOODY'S ADDED THAT THE COMPANY'S DIVERSIFIED ASSET BASE OFFERS SIGNIFICANT OPPORTUNITIES FOR CONTINUED INTERNAL GROWTH AND THE COMPANY SHOULD CONTINUE TO PERFORM WELL OVER THE INTERMEDIATE TERM NEVADA POWER CO LAS VEGAS MOODY'S INVESTORS SERVICE INC UPGRADED THE COMPANY'S CREDIT RATINGS BASED ON IMPROVED FINANCIAL PERFORMANCE AND REGULATORY SUPPORT IT ALSO CITED A FAVORABLE COST POSITION THAT WILL ALLOW THE COMPANY TO BE COMPETITIVE IN A DEREGULATING ENVIRONMENT ABOUT 500 MILLION OF LONGTERM DEBT IS AFFECTED MOODY'S SAID MOODY'S RAISED THE RATINGS OF NEVADA POWER'S FIRSTMORTGAGE BONDS AND SECURED POLLUTIONCONTROL REVENUE BONDS TO BAA2 FROM BAA3 SHELF REGISTRATION OF FIRSTMORTGAGE BONDS TO PBAA2 FROM PBAA3 UNSECURED POLLUTIONCONTROL REVENUE BONDS TO BAA3 FROM BA1 PREFERRED STOCK TO BAA3 FROM BA1 AND THE COMPANY'S SHORTTERM RATING FOR COMMERCIAL PAPER TO PRIME2 FROM PRIME3 US HOME CORP HOUSTON STANDARD & POOR'S CORP RAISED ITS RATING ON 200 MILLION OF US HOME'S SENIOR UNSECURED DEBT TO SINGLEBPLUS FROM SINGLEB AND ASSIGNED A SINGLEBMINUS RATING TO THE HOME BUILDER'S PROPOSED OFFERING OF 69 MILLION IN CONVERTIBLE SUBORDINATED DEBENTURES S&P ALSO SAID IT WAS REVISING ITS OUTLOOK FOR US HOME TO STABLE FROM POSITIVE AS A RESULT OF BETTERTHANEXPECTED OVERALL SALES ACTIVITY AND IMPROVED FINANCIAL FLEXIBILITY US HOME EMERGED FROM BANKRUPTCY PROCEEDINGS IN JUNE 9310150079 931015 BUSINESS BRIEF PWA CORP UNIT CLEARS HURDLE IN BID TO WITHDRAW FROM GEMINI CANADIAN AIRLINES INTERNATIONAL LTD CLEARED ANOTHER LEGAL HURDLE IN ITS EFFORTS TO WITHDRAW FROM A COMPUTER SERVICE CONTRACT WITH GEMINI GROUP AUTOMATED DISTRIBUTION SYSTEMS INC CANADIAN AIRLINES A SUBSIDIARY OF PWA CORP CALGARY ALBERTA MUST WITHDRAW FROM THE GEMINI CONTRACT IF IT IS TO PROCEED WITH A PROPOSED PARTNERSHIP AGREEMENT WITH AMR CORP WHICH OPERATES THE RIVAL SABRE COMPUTER SYSTEM THE AMERICAN AIRLINES PARENT HAS AGREED TO BUY A ONETHIRD EQUITY INTEREST IN CANADIAN CANADA'S SUPREME COURT REFUSED A GEMINI REQUEST FOR A HEARING ON WHETHER THE COUNTRY'S COMPETITION TRIBUNAL HAS JURISDICTION TO FREE CANADIAN FROM ITS GEMINI CONTRACT THE RULING MEANS THE TRIBUNAL CAN PROCEED AS PLANNED WITH A NEW HEARING ON THE DISPUTE THE TRIBUNAL HAD SAID IT FAVORED CANADIAN'S WITHDRAWL FROM GEMINI BUT SAID IT DIDN'T HAVE THE AUTHORITY TO ORDER SUCH A MOVE THE FEDERAL COURT OF APPEAL IN A SUBSEQUENT RULING ORDERED THE TRIBUNAL TO RECONSIDER THE MATTER AND TO FIND A REMEDY TO THE DISPUTE 9310150078 931015 BUSINESS BRIEF MCGRAWHILL INC FINANCIALSERVICES OPERATIONS TO FORM SINGLE NEW GROUP MCGRAWHILL INC NEW YORK IS INCORPORATING THREE OF ITS FINANCIALSERVICES OPERATIONS INTO A NEW FINANCIAL INFORMATION SERVICES GROUP THE NEW GROUP COMPRISES THE STANDARD & POOR'S INFORMATION GROUP JJ KENNY CO AND DRI/MCGRAWHILL AND WILL BE HEADED BY JAMES R QUANDT 44 YEARS OLD FORMERLY PRESIDENT OF JJ KENNY THE S&P INFORMATION GROUP PROVIDES FINANCIAL ECONOMIC AND INVESTMENT DATA TO THE FINANCIAL COMMUNITY AND COMMODITY TRADING MARKETS WHILE JJ KENNY PROVIDES MUNICIPAL SECURITIES INFORMATION DRI/MCGRAWHILL PROVIDES ECONOMIC ADVISORY AND CONSULTING SERVICE ALSO MICHAEL K HEHIR 45 FORMERLY HEAD OF THE THE S&P INFORMATION GROUP WAS NAMED TO THE NEW POSITION OF EXECUTIVE VICE PRESIDENT FOR NEW VENTURES 9310150077 931015 HASBRO'S PROFIT CLIMBED BY 12 IN 3RD QUARTER TOYS FROM MOVIES AND TV SELL WELL IN AN INDUSTRY WITH MIXED RESULTS BY JOSEPH PEREIRA STAFF REPORTER OF THE WALL STREET JOURNAL HASBRO INC EXPLOITING A CAST OF TOYS DERIVED FROM MOVIES AND TELEVISION REPORTED A 12 THIRDQUARTER EARNINGS INCREASE IN AN INDUSTRY WHERE RESULTS HAVE BEEN MIXED BECAUSE OF CONSUMERS' JITTERS EARNINGS AT THE COUNTRY'S LARGEST TOYMAKER ROSE TO 755 MILLION OR 84 CENTS A SHARE FROM 674 MILLION OR 75 CENTS A SHARE A YEAR EARLIER SALES CLIMBED 53 TO 8124 MILLION FROM 7712 MILLION HASBRO WITH 40 OF ITS BUSINESS OVERSEAS WOULD HAVE REPORTED AN ADDED 47 MILLION IN SALES WITHOUT THE TRANSLATION EFFECTS OF A STRONGER US DOLLAR HASBRO BASED IN PAWTUCKET RI IS THE FIRST MAJOR TOY MANUFACTURER TO REPORT EARNINGS ANALYSTS ESTIMATE THAT MATTEL INC AND FISHERPRICE INC WHICH MATTEL HAS AGREED TO ACQUIRE WILL ALSO REPORT IMPROVED EARNINGS BUT LEWIS GALOOB TOYS INC IS PROJECTED TO REPORT A LOSS WHILE TYCO TOYS INC HAS SAID IT WILL REPORT SHARPLY LOWER EARNINGS AND RESULTS AT BOTH JUST TOYS INC AND REVELLMONOGRAM INC ARE EXPECTED TO HAVE DECLINED FROM A YEAR AGO MATTEL AND TYCO NO 2 AND NO 3 IN THE INDUSTRY HAVE ALREADY ANNOUNCED DISCOUNT COUPONS FOR HOLIDAY SHOPPERS NOTED PAUL VALENTINE ANALYST FOR STANDARD & POOR'S CORP RETAIL SALES HAVE BEEN SLUGGISH AND RETAILERS ARE NOT RUNNING OUT TO STOCK UP FOR CHRISTMAS HE SAID TOY RETAILING GIANT TOYS R US INC IS EXPECTED TO POST A MODERATE 8 GAIN IN EARNINGS AFTER A CHARGE FOR RETROACTIVE TAX EFFECTS SKIMPY RETAIL ORDERS THROUGH THE FIRST HALF HAD LED TO EXPECTATIONS OF MORE AGGRESSIVE ORDERING TO REPLENISH STOCK FOR CHRISTMAS BUYING BUT MANY RETAILERS CONTINUED TO PLAY IT SAFE CHOOSING PRODUCTS FROM LARGER COMPANIES KNOWING THEIR ADVERTISING BUDGETS WILL GIVE THEIR TOYS ADDED HELP ANALYSTS SAID THIS YEAR BIG TOYMAKERS HAVE THE HITS A BREAK WITH YEAR PAST WHEN SMALLER ENTREPRENEURS BROUGHT OUT HOT TOYS FOR EXAMPLE HASBRO'S JURASSIC PARK FIGURINES BARNEY AND BATMAN TOYS HAVE SOLD WELL IN RECENT MONTHS BECAUSE HASBRO HAS A BEVY OF HOT PRODUCTS THIS YEAR THE COMPANY CAN ALSO ENTICE RETAILERS TO TAKE TOYS THAT MIGHT BE SLIGHTLY LESS DESIRABLE SAID JILL KRUTICK ANALYST FOR SALOMON BROTHERS INC MATTEL MARKETING ITS BARBIE DOLL THROUGH NEWVARIATION INTRODUCTIONS AND DISCOUNTS HASN'T SUFFERED MUCH FROM RETAIL WARINESS THE EL SEGUNDO CALIF COMPANY WILL REPORT NET INCOME NEXT WEEK OF AT LEAST 76 CENTS A SHARE UP FROM 67 CENTS A YEAR AGO FULLY DILUTED PREDICTS KIDDER PEABODY & CO ANALYST GARY JACOBSON HE SEES 71CENT NET INCOME ON A PRIMARY BASIS AND SALES UP 10 TO 665 MILLION FROM 6065 MILLION LAST YEAR FISHER PRICE IS ALSO EXPECTED TO POST UPBEAT EARNINGS NEXT WEEK FOLLOWING TWO DISAPPOINTING QUARTERS LAURIE SMITH AN ANALYST WITH SEIDLER CO ESTIMATES THE AURORA NY COMPANY WILL EARN 59 CENTS A SHARE COMPARED WITH 45 CENTS A YEAR EARLIER ON SALES OF 210 MILLION UP 12 FROM A YEAR EARLIER ON THE DOWNSIDE SEAN MCGOWAN AN ANALYST FOR GERARD KLAUER MATTISON & CO FIGURES TYCO WILL POST EARNINGS OF BETWEEN FIVE CENTS TO 10 CENTS A SHARE A DRASTIC DECLINE FROM 51 CENTS A YEAR EARLIER THE MOUNT LAUREL NJ COMPANY HAS SAID SALES WERE ABOUT EQUAL TO LAST YEAR'S 2381 MILLION JOHN TAYLOR OF LH ALTON & CO ESTIMATES THAT LEWIS GALOOB WILL POST A LOSS OF FIVE CENTS TO 10 CENTS COMPARED WITH THE EIGHTCENTASHARE PROFIT THE SAN FRANCISCO COMPANY HAD IN THE YEAREARLIER QUARTER SALES PROBABLY FELL TO BETWEEN 40 MILLION TO 44 MILLION FROM 483 MILLION LAST YEAR HE SAID GERARD KLAUER MATTISON'S MR MCGOWAN ESTIMATES THAT FOR ITS THIRD QUARTER ENDING NOV 1 TOYS R US WILL REPORT NET OF 13 CENTS A SHARE AN 8 GAIN FROM THE YEAREARLIER 12 CENTS MR MCGOWAN'S ESTIMATE INCLUDES A NONCASH CHARGE OF ABOUT TWO CENTS A SHARE FOR RETROACTIVE EFFECTS OF THE CORPORATE TAX INCREASE HE EXPECTS SALES OF THE PARAMUS NJ CONCERN TO INCREASE 11 TO 15 BILLION FROM 135 BILLION THE LACK OF A MEGAHIT LIKE LAST YEAR'S HIGHPOWER WATER GUNS AND A SOSO VIDEO GAME BUSINESS HAS HURT RETAILERS SO FAR THIS YEAR BUT THE PICTURE HAS BRIGHTENED WITH AN ARRAY OF NEW VIDEO GAMES AND THE RELEASE OF DISNEY'S ALLADIN FILM ON VIDEO AN ESTIMATED 25 MILLION COPIES ARE EXPECTED TO BE PURCHASED BY YEAR'S END YIELDING ABOUT 400 MILLION IN RETAIL SALES TOYS R US SHOULD ALSO GET A BOOST FROM MORTAL KOMBAT THE CONTROVERSIAL FIGHTTOTHE DEATH GAMECARTRIDGE FROM ACCLAIM ENTERTAINMENT INC ANALYSTS EXPECT ACCLAIM TO SELL BETWEEN TWO MILLION AND 45 MILLION UNITS BY YEAR'S END A NUMBER OF OTHER NEW OFFERINGS INCLUDING BILL WALSH NCAA FOOTBALL BY ELECTRONIC ARTS INC AND CAPCOM INC'S STREET FIGHTER II HAVE IMPROVED PROSPECTS FOR VIDEOGAME SALES BIG VIDEO HITS HAVE SOMETIMES HURT TOY SALES BUT LAST YEAR THE TWO PRODUCTS BOTH DID REASONABLE WELL AT THE SAME TIME ANALYSTS LIKE MR TAYLOR HAVE THEIR FINGERS CROSSED THAT THE PEACEFUL COEXISTENCE WILL BE REPEATED THIS CHRISTMAS AT THE CASH REGISTER 9310150076 931015 BUSINESS BRIEF VALERO ENERGY CORP REFINER CONSIDERS BID TO BUY REST OF GASPIPELINE CONCERN VALERO ENERGY CORP SAID IT'S CONSIDERING MAKING AN OFFER TO ACQUIRE THE 97 MILLION COMMON UNITS OF VALERO NATURAL GAS PARTNERS LP IT DOESN'T ALREADY OWN FOR 11 APIECE OR ABOUT 1067 MILLION VALERO ENERGY AN OIL REFINER ALREADY OWNS A 49 STAKE IN VALERO NATURAL GAS A GASPIPELINE COMPANY THAT ALSO PRODUCES NATURALGAS LIQUIDS VALERO NATURAL GAS CURRENTLY HAS 18486538 COMMON UNITS OUTSTANDING BOTH COMPANIES ARE BASED IN SAN ANTONIO TRADING IN VALERO NATURAL GAS SHARES WAS TEMPORARILY HALTED ON THE NEW YORK STOCK EXCHANGE YESTERDAY THE STOCK GAINED 75 CENTS OR 73 TO CLOSE AT 11 VALERO ENERGY SHARES ROSE 25 CENTS TO 25375 IN COMPOSITE TRADING ON THE BIG BOARD UNDER THE ACQUISITION PROPOSAL VALERO NATURAL GAS WOULD BE MERGED WITH A UNIT OF VALERO ENERGY SEPARATELY MOODY'S INVESTORS SERVICE INC SAID THAT AS A RESULT OF THE PROPOSAL IT'S REVIEWING ABOUT 200 MILLION OF VALERO ENERGY DEBT FOR POSSIBLE DOWNGRADE 9310150075 931015 LETTERS TO THE EDITOR TEACHING THE FACTS AS I SEE THEM IT IS ONE THING TO DISAGREE WITH AN ARTICLE BUT QUITE ANOTHER TO IMPUGN THE CREDIBILITY OF THE AUTHOR AS WILLIAM S KORN DID IN HIS LETTER OF OCT 5 COMMENTING ON MY EDITORIAL PAGE ARTICLE OF SEPT 13 COLLEGE TEACHERS THE NEW LEISURE CLASS ABOUT COLLEGE FACULTY PRODUCTIVITY I RESENT HIS ASPERSIONS ON MY ACCURACY MR KORN IS COAUTHOR OF ONE OF THE SEVERAL DATA SOURCES I USED TO BACK UP MY ARGUMENT THAT THE WORK SCHEDULES OF COLLEGE TEACHERS DO NOT SUFFICIENTLY EMPHASIZE CLASSROOM TEACHING CONTRARY TO INFERENCES THAT COULD BE DRAWN FROM MR KORN'S LETTER I CORRECTLY CITED THE STATISTICS I USED FROM HIS REPORT AS WELL AS FROM REPORTS BY OTHERS DIFFERENCES IN OUR CONCLUSIONS ARE OWED TO INTERPRETATION NOT TO INACCURACIES FOR EXAMPLE HE SAID THAT I WAS INCORRECT IN WRITING THAT THE AVERAGE FACULTY MEMBER DEVOTES ABOUT 20 HOURS A WEEK TO THE CLASSROOM THE FIGURE REPRESENTS A COMBINATION OF TIME ACTUALLY SPENT TEACHING AND TIME PREPARING FOR TEACHING ACCORDING TO MR KORN I AM WRONG BECAUSE I DID NOT INCLUDE AN AVERAGE OF EIGHT HOURS SPENT ADVISING AND COUNSELING STUDENTS RAISING THE FIGURE TO 28 HOURS A WEEK IF MR KORN WANTS TO INCLUDE TIME SPENT SITTING IN ONE'S OFFICE IF ONE IS INDEED IN THE OFFICE AS PART OF DIRECT CLASSROOM INSTRUCTION THAT IS HIS INTERPRETATION IT'S NOT MINE FURTHERMORE ACCORDING TO STATISTICS FROM MR KORN'S OWN REPORT 592 OF ALL FACULTY SAY THAT THEY SPEND NO MORE THAN FOUR HOURS A WEEK ADVISING AND COUNSELING STUDENTS I PROPOSED THAT ON A CASEBYCASE BASIS MAKING ALLOWANCES FOR THE PARTICULARITIES OF TEACHING GRADUATE STUDENTS FOR INSTANCE THAT FACULTY MEMBERS SPEND MORE TIME IN THE CLASSROOM MR KORN SAID THAT HIS SURVEY SHOWS THAT FACULTY SPEND AN AVERAGE OF 45 HOURS A WEEK ON SEVEN TASKS IMPLYING THAT I WAS NOT TAKING THIS INTO CONSIDERATION I NEVER DISPUTED THIS 45HOUR FIGURE BUT THE STATISTIC IS EMBLEMATIC OF THE PROBLEM WITHOUT DEBATE A SITUATION HAS EVOLVED IN HIGHER EDUCATION IN WHICH FACULTY MEMBERS ARE PAID FOR ACTIVITIES THAT MAINLY INVOLVE NOT BEING IN THE CLASSROOM IS THIS WHAT STUDENTS AND TAXPAYERS WANT ONE OF THE SEVEN TASKS TO WHICH MR KORN REFERS FOR INSTANCE IS CONSULTATION WITH CLIENTS OR PATIENTS ARE STUDENTS REALLY WELLSERVED BY THE MINORITY OF PROFESSORS WHO SPEND PART OF THEIR SALARIED TIME MAKING MONEY AS CONSULTANTS IT IS CLEAR IN MEDICAL SCHOOLS THAT THE PROFOUND PRESSURE ON PHYSICIANFACULTY MEMBERS TO GENERATE REVENUE BY INCREASING THE NUMBER OF PATIENTS THEY TREAT MAKES IT MORE DIFFICULT FOR STUDENTS TO HAVE CONTACT WITH PROFESSORS I POINTED OUT THAT WORK SCHEDULES TEND TO BE STRUCTURED ON THE ASSUMPTION THAT EVERYONE WILL DO RESEARCH AND YET 45 OF THE NATION'S PROFESSORIATE HAD NO PROFESSIONAL WRITINGS ACCEPTED OR PUBLISHED DURING A GIVEN TWOYEAR PERIOD MR KORN OBJECTED CITING DATA SHOWING THAT THE LESS TIME A FACULTY MEMBER SPENDS ON RESEARCH THE MORE HE OR SHE SPENDS ON CLASSROOM TEACHING WHAT HE DIDN'T ADD THOUGH IS THAT THE FEWER HOURS A REGULAR FACULTY MEMBER TEACHES THE HIGHER HIS SALARY IS APT TO BE FINALLY MR KORN CONCEDED THAT MANY OF THE ISSUES I RAISED ARE WORTHY OF DISCUSSION YET THIS MAGNANIMITY IS FOLLOWED BY THE CHARGE THAT I HAVE WRITTEN HALFTRUTHS AND THE ASSERTION THAT MY MEANSPIRITED REMARKS ARE A DISSERVICE TO MY EMPLOYER WHAT I SAID WAS MY OPINION AND HAD NOTHING WHATSOEVER TO DO WITH MY EMPLOYER NOT UNLIKE THE ACADEMICS WHOSE SIGNATURES ON THEIR LETTERS TO THE EDITOR ARE ACCOMPANIED BY THEIR AFFILIATIONS WHAT IS MOST CLEAR FROM THIS PERSONAL ATTACK IS THAT CERTAIN ISSUES IN HIGHER EDUCATION ARE IN FACT CLOSED TO DISCUSSION THE QUESTION OF WHETHER IT IS SUFFICIENT THAT FACULTY MEMBERS SPEND AN AVERAGE OF 98 TO 105 HOURS A WEEK IN THE CLASSROOM IS ONE SUCH VERBOTEN TOPIC AND THOSE WHO DARE TO BROACH IT ARE SUBJECT TO BEING DISCREDITED SO THAT THE DEBATE IS NOT JOINED THE PITY IS THAT IF THE ACADEMY ITSELF DOES NOT FACE UP TO THIS ISSUE IT WILL BE RESOLVED IN HEAVYHANDED FASHION BY STATE LEGISLATORS WHO WILL BE LEFT WITH NO OTHER CHOICE 9310150074 931015 BUSINESS BRIEF CHECKERS DRIVEIN RESTAURANTS INC SHAREHOLDER SUIT QUESTIONS DATA ON REVENUE EXPENSES CHECKERS DRIVEIN RESTAURANTS INC CLEARWATER FLA SAID A SHAREHOLDER SUED THE COMPANY CHARGING THAT THE FASTFOOD CONCERN OVERSTATED REVENUE AND UNDERSTATED EXPENSES IN FILINGS WITH FEDERAL REGULATORS THE COMPANY IN A STATEMENT DENIED THE CHARGES AND SAID IT WOULD VIGOROUSLY DEFEND ITSELF CHECKERS OFFICIALS COULDN'T BE REACHED FOR COMMENT THE LAWSUIT FILED WEDNESDAY IN US DISTRICT COURT IN TAMPA FLA CLAIMS CHECKERS INFLATED ITS REPORTED REVENUE BY PREMATURELY BOOKING RECEIVABLES AT ITS CONSTRUCTION UNIT CHAMPION MODULAR RESTAURANT CO AMONG OTHER CHARGES THE LAWSUIT ALSO ACCUSES CHECKERS OF FAILING TO SET ASIDE FUNDS FOR PAYROLL TAXES FOR EMPLOYEES WHO WERE WRONGLY CATEGORIZED AS INDEPENDENT CONTRACTORS FILED BY COLBY COLLIER A SHAREHOLDER IN NEW YORK CITY THE COMPLAINT SEEKS CERTIFICATION AS A CLASS ACTION 9310150073 931015 LETTERS TO THE EDITOR NO SIGNIFICANT RISK TO GLASS FIBER WORKERS AS THE REPRESENTATIVE OF TENS OF THOUSANDS OF WORKERS EMPLOYED IN MANUFACTURING GLASS FIBERS I READ WITH CONCERN YOUR SEPT 13 ARTICLE US TO REVIEW RESEARCH THAT SUGGESTS FIBERGLASS INSULATION IS CARCINOGEN I AM CONFIDENT THAT EXTENSIVE SCIENTIFIC DATA ESTABLISHES THAT OUR MEMBERS DO NOT HAVE A SIGNIFICANT RISK OF DEVELOPING CANCER FROM THE FIBERS THEY MAKE THE GMP AND THE GLASS FIBER MANUFACTURERS HAVE WORKED TO INVESTIGATE THE HEALTH EFFECTS OF THESE FIBERS AND HAVE PROVIDED THE RESULTS OF THOSE INVESTIGATIONS TO VARIOUS FEDERAL AGENCIES DESPITE THOSE EFFORTS IT DOES NOT APPEAR THAT THE NATIONAL TOXICOLOGY PROGRAM HAS ADEQUATELY REVIEWED THE AVAILABLE SCIENTIFIC DATA WE WILL CONTINUE TO WORK WITH THE AGENCY DURING ITS REVIEW PROCESS TO EDUCATE IT ABOUT ALL OF THE AVAILABLE DATA IN LIGHT OF THE PUBLICLY STATED POSITION OF THOSE CHARGED WITH THIS REVIEW I AM CONCERNED THESE FIBERS WILL NOT BE GIVEN A FAIR AND IMPARTIAL REVIEW 9310150072 931015 LETTERS TO THE EDITOR STOP FRIGHTENING RATS AND HELP THE CHILDREN REGARDING PANIC PATHWAY PAGE ONE SEPT 29 WHICH STATES THAT FEELINGS ARE THE MOST AMBIGUOUS PRODUCTS OF THE HUMAN BRAIN I AM HAVING SOME VERY UNAMBIGUOUS FEELINGS ABOUT 2 BILLION OF TAXPAYER MONEY SPENT TO DETERMINE IF INFANT RATS ARE AFRAID OF CATS ELECTROSHOCKING RATS AND EXPOSING NEWBORN MONKEYS TO SNAKES IS SUPPOSED TO REVEAL INFORMATION TO RESEARCHERS ABOUT THE COMPLICATED SOCIAL AND PSYCHOLOGICAL FEARS OF HUMAN BEINGS HERE'S SOME ALTERNATIVE DATA WE HAVE A STRAY CAT AT OUR HOUSE WHO HAD KITTENS TWO WEEKS AGO THE MOTHER AND KITTENS HAVE BEEN TREATED WITH COMPASSION AND ARE COMFORTABLE IN OUR KITCHEN OUR DOGS HAVE BEEN VERY CURIOUS AND WE ALLOW THE DOGS NEAR THE KITTENS NEITHER KITTEN NOR DOG HAS SHOWN ANY FEAR THE 2 BILLION LABORATORY DATA ON THE OTHER HAND IS CONVOLUTED INITIALLY BECAUSE A LAB ANIMAL IS ALREADY AFRAID OF THE LABORATORY ENVIRONMENT TO ALL THE RESEARCHERS WHO WILL WRITE STATING I AM NOT MEDICALLY QUALIFIED TO JUDGE THIS RIDICULOUS RESEARCH I REPLY THAT I HAVE EXCELLENT SKILLS IN BASIC MATHEMATICS AND THAT 2 BILLION WOULD PROVIDE HEALTH CARE FOR THE 10 MILLION CHILDREN IN THIS COUNTRY WHO DO NOT RECEIVE IT I THINK THERE IS AN EVEN GREATER FEAR THESE RESEARCHERS SHOULD EXAMINE THEIR OWN FEAR THAT THE FEDERAL GRANT GRAVY TRAIN IS GOING TO COME TO A HALT 9310150071 931015 INTERNATIONAL WORLD ECONOMY US RULES DATING FROM THE COLD WAR BLOCK BILLIONS OF DOLLARS IN EXPORTS BY ROBERT KEATLEY STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON IT IS COMMON KNOWLEDGE THAT JAPANESE TRADE PRACTICES EXCLUDE BILLIONS OF DOLLARS IN US GOODS EVERY YEAR BUT NOT MANY PEOPLE REALIZE THAT US RULES BLOCK SALES OF EVEN MORE DOLLARS WORTH OF PRODUCTS THAT WASHINGTON FOR VARIOUS REASONS WON'T LET US COMPANIES SELL OVERSEAS AMERICAN TELEPHONE & TELEGRAPH CO KNOWS THE COMPANY ESTIMATES US RESTRICTIONS WILL COST IT 500 MILLION OF FOREIGN BUSINESS OVER THE NEXT FIVE YEARS SALES THAT MAY WELL GO TO OLD COMPETITORS FROM EUROPE OR JAPAN OR TO NEW ONES FROM SUCH PLACES AS ISRAEL SUCH RESTRICTIONS USUALLY TRY TO KEEP EQUIPMENT OF MILITARY VALUE AWAY FROM THE WORLD'S PRESENT OR POTENTIAL BAD ACTORS OR SYMBOLIZE AMERICA'S OFFICIAL DISLIKE OF A NATION'S CONDUCT MOST DATE FROM THE COLD WAR AND AT&T FOR ONE BELIEVES THEIR TIME HAS GONE IT IS UNREALISTIC PERHAPS BORDERING ON ARROGANCE TO THINK THAT ANY COUNTRY WOULD GO WITHOUT ADVANCED INFORMATION TECHNOLOGY JUST BECAUSE US COMPANIES WERE FORBIDDEN TO PROVIDE IT CHAIRMAN ROBERT E ALLEN COMPLAINED TO CONGRESS THE CLINTON ADMINISTRATION GOT THE MESSAGE IT RECENTLY SCRAPPED SOME CONTROLS NOTABLY ON COMPUTERS AS PART OF A BROAD NEW POLICY TO BOOST EXPORTS BUT THIS WINS ONLY TWO CHEERS FROM MANY SPECIALISTS THEY WANT EVEN FEWER CONTROLS PLUS MORE EXPORT FINANCING AND THEY SUSPECT THE PLAN STARTS EXPORT PROMOTION SCHEMES THAT MAINLY WASTE TIME AND MONEY ECONOMIST J DAVID RICHARDSON OF SYRACUSE UNIVERSITY IS AMONG THEM HIS COMPREHENSIVE STUDY OF EXPORT DISINCENTIVES ESTIMATES THEY COST US COMPANIES A PROBABLE 21 BILLION TO 27 BILLION YEARLY EXCLUDING ACTUAL WEAPONS HE CONTENDS THE US DOES HAVE POLITICAL OR SECURITY REASONS FOR CERTAIN RESTRICTIONS BUT OVERDOES IT WASHINGTON HAS BEEN UNDULY NONCHALANT ABOUT THE ECONOMIC AFFECT HE SAYS BY COMPARISON A STUDY BY THE INSTITUTE FOR INTERNATIONAL ECONOMICS ESTIMATES JAPANESE TRADE RESTRAINTS ANNUALLY BLOCK 9 BILLION TO 18 BILLION OF US GOODS MR RICHARDSON SAYS US EXPORT CONTROLS ESPECIALLY TARGET HIGHTECH INDUSTRIES THAT ARE KEY TO ECONOMIC GROWTH AND SLOW CREATION OF HIGHQUALITY JOBS AMONG THOSE HIT HARDEST ARE MAKERS OF COMPUTERS TELECOMMUNICATIONS EQUIPMENT MACHINE TOOLS AND CIVIL AIRCRAFT INCLUDING SMALL COMPANIES THAT PRODUCE COMPONENTS THE US IS THE WORLD'S MOST AGGRESSIVE CONTROLLER OF EXPORTS MR RICHARDSON SAYS FOR EXAMPLE IT IS THE ONLY NATION THAT WON'T LET COMPANIES SHIP CHINA ANY EQUIPMENT DESTINED FOR NUCLEAR POWER PLANTS EVEN IF THE PRODUCTS HAVE NOTHING TO DO WITH REACTORS THUS WESTINGHOUSE ELECTRIC CORP CAN SELL CHINA STEAM TURBINES FOR COALFIRED PLANTS BUT NOT IDENTICAL EQUIPMENT FOR THOSE WITH NUCLEAR REACTORS THIS HAS NO LOGIC COMPLAINS AN EXECUTIVE WHO HAS TWO ORDERS IN HAND BUT CAN'T GET THE RULE CHANGED YET MANY RESTRICTIONS HAVE REASONABLE ORIGINS SOME WERE COLD WAR MEASURES TO KEEP CRITICAL TECHNOLOGY FROM THE SOVIET UNION CHINA AND OTHERS ESPECIALLY SUCH THINGS AS HIGHPOWERED COMPUTERS THAT COULD BE USED IN WEAPONS PROGRAMS OTHER RULES AIM TO KEEP SUCH NATIONS AS IRAN FROM BUILDING WEAPONS OF MASS DESTRUCTION THESE RESTRICTIONS ACCOUNT FOR UP TO 75 OF DENIED EXPORTS MANY SECURITY CONTROLS WON'T DISAPPEAR DESPITE THIS ADMINISTRATION'S MORE LIBERAL ATTITUDE TELECOMS IS DIFFERENT WARNS JOHN DEUTSCH UNDERSECRETARY OF DEFENSE THAT MAY NOT BE GOOD NEWS FOR AT&T BUT THAT'S THE KIND OF BALANCE THAT MUST BE STRUCK US INTELLIGENCE AGENCIES APPARENTLY BLOCK SUCH EXPORTS SO THEY CAN KEEP TAPPING OLDER RUSSIAN AND CHINESE SYSTEMS OTHER MEASURES ARE FOREIGN POLICY CONTROLS FOR EXAMPLE THE US WON'T LET BOEING CO SELL JETLINERS TO IRAN BECAUSE IT CONTENDS TEHERAN SUPPORTS INTERNATIONAL TERRORISTS THE PLANES HAVE NO RELATION TO TERRORISM AND IRAN CAN BUY EUROPEAN JETS AS SUBSTITUTES BUT WASHINGTON CONSIDERS THE BAN A USEFUL SYMBOL OF OFFICIAL DISPLEASURE YET SOME RULES CLEARLY ARE OUTDATED PREVIOUS NATIONAL SECURITY SANCTIONS BLOCKED MANY EXPORTS OF COMPUTERS SUCH AS THOSE SOLD AT RADIO SHACK RELAXED NEW RULES COVERING A POTENTIAL 35 BILLION OF EXPORTS INDICATE THE WHITE HOUSE ACCEPTED REALITY AND CONCEDED IT JUST COULDN'T CONTROL COMPUTERS ANY MORE NOW MANY ANALYSTS WANT MORE US RULES DROPPED AND INTERNATIONAL ONES THAT CURB SPREAD OF THE WORLD'S DEADLIEST WEAPONS STRENGTHENED AMERICA THEN SHOULD GAIN NEW MARKETS TO A LESSER DEGREE SO MIGHT OTHERS WHO SIGN THESE MULTILATERAL REGIMES BUT OUTSIDERS WHO SELL COPYCAT TECHNOLOGY INCLUDING ISRAEL BRAZIL SOUTH KOREA AND TAIWAN WOULD BE LOSERS 9310150070 931015 WHO'S NEWS CHIEF OF FUTURE COMMUNICATIONS QUITS TEMPORARILY BY ANDREA GERLIN STAFF REPORTER OF THE WALL STREET JOURNAL DALLAS THE CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF EMBATTLED FUTURE COMMUNICATIONS INC HAS TEMPORARILY STEPPED DOWN FROM RUNNING THE CABLETELEVISION CONCERN MEANWHILE THERE WERE SIGNS THAT THE JUSTICE DEPARTMENT IS INTERESTED IN FUTURE THE COMPANY ALONG WITH ITS CHIEF EXECUTIVE HAS BEEN ACCUSED OF FRAUDULENTLY INFLATING FUTURE'S STOCK PRICE IN A CIVIL SUIT BY THE SECURITIES AND EXCHANGE COMMISSION AFTER A HEARING YESTERDAY IN THAT CASE KATHERINE ADDLEMAN CHIEF OF AN ENFORCEMENT UNIT AT THE FORT WORTH DISTRICT OFFICE OF THE SEC SAID THE JUDGE OVERSEEING THE CASE LAST WEEK EXPRESSLY DIRECTED THE SEC TO REFER THE FUTURE MATTER TO THE JUSTICE DEPARTMENT BEFORE THE SEC COULD ACT SHE SAID IT WAS CONTACTED BY THE US ATTORNEY'S OFFICE BUT STEPHEN CASS WEILAND AN ATTORNEY FOR FUTURE'S CHIEF EXECUTIVE SERGIO BOSCO SAID NEITHER HE NOR MR BOSCO HAD BEEN CONTACTED BY THE US ATTORNEY'S OFFICE THE US ATTORNEY'S OFFICE DIDN'T RETURN CALLS AT THE HEARING US DISTRICT JUDGE JOE KENDALL ISSUED A PRELIMINARY INJUNCTION BARRING FUTURE AND MR BOSCO FROM BUYING AND SELLING SECURITIES AND FILING FALSE AND MISLEADING INFORMATION JUDGE KENDALL ALSO FROZE THE ASSETS MR BOSCO OBTAINED FROM COMPANY STOCK TRANSACTIONS EXCEPT FOR UP TO 10000 A MONTH FOR REASONABLE AND NECESSARY LIVING EXPENSES AND ORDERED HIM TO PRODUCE AN INTERIM ACCOUNTING WITHIN 15 DAYS THE TERMS OF THE ORDER NEGOTIATED BY ATTORNEYS WEDNESDAY ARE SIMILAR TO THOSE IN A TEMPORARY RESTRAINING ORDER ISSUED OCT 4 AFTER THE SEC SUED THE COMPANY AND MR BOSCO THE SEC ALLEGES THAT THEY ENGINEERED A SCHEME TO FRAUDULENTLY INFLATE THE COMPANY'S STOCK PRICE THROUGH FALSE AND MISLEADING DISCLOSURES AND THE SUPPRESSION OF POTENTIALLY DAMAGING INFORMATION MR WEILAND SAID THE PRELIMINARY AGREEMENT GIVES HIS CLIENT SOME BREATHING ROOM THE JUDGE GRANTED THE ATTORNEY'S REQUEST THAT THE INTERIM ACCOUNTING BE SEALED TO PROTECT MR BOSCO'S PRIVACY THE JUDGE'S ORDER DOESN'T PROHIBIT MR BOSCO FROM RUNNING THE CABLETELEVISION CONCERN BUT THE SEC IS STILL SEEKING A PERMANENT INJUNCTION THAT WOULD BAR HIM FROM EVER SERVING AS AN OFFICER OR DIRECTOR OF A PUBLIC COMPANY MR WEILAND SAID MR BOSCO STEPPED DOWN FROM RUNNING THE COMPANY THIS WEEK BECAUSE IT WASN'T FEASIBLE FOR HIM TO REMAIN AT THE HELM DURING THE LITIGATION MR WEILAND SAID SENIOR MANAGEMENT IS RUNNING THE COMPANY BUT HE SAID HE COULDN'T IDENTIFY WHO IS IN CHARGE COMPANY OFFICIALS DIDN'T RETURN TELEPHONE CALLS SEEKING COMMENT 9310150069 931015 BUSINESS BRIEF CARL KARCHER ENTERPRISES INC FOUR INVESTORS AGREE TO BUY STOCK FROM OUSTED FOUNDER FOUR INVESTORS LED BY FIDELITY NATIONAL FINANCIAL INC CHAIRMAN WILLIAM P FOLEY II AGREED TO BUY 48 MILLION OF CARL KARCHER ENTERPRISES INC STOCK FROM THE COMPANY'S RECENTLY OUSTED FOUNDER PREVENTING A BANK'S LIQUIDATION OF THE SHARES CARL N KARCHER HAD PLEDGED THE SHARES AS COLLATERAL ON A LOAN WITH COMMERCIAL CENTER BANK OF SANTA ANA CALIF THAT IS NOW IN DEFAULT AND THE BANK HAD THREATENED TO SELL THE STOCK UNLESS MR KARCHER IMMEDIATELY REPAID THE 49 MILLION LOAN FIDELITY NATIONAL IS AN IRVINE CALIFBASED TITLE INSURANCE COMPANY THE SHARES TO BE SOLD REPRESENT ABOUT 10 OF MR KARCHER'S 34 STAKE IN THE ANAHEIM CALIFBASED FASTFOOD CHAIN HE FOUNDED 52 YEARS AGO MR KARCHER'S NEXT CHALLENGE IS TO REFINANCE ANOTHER LOAN IN DEFAULT WITH UNION BANK OF SAN FRANCISCO MR KARCHER PLEDGED 36 MILLION OF HIS 62 MILLION SHARES AS SECURITY ON THAT LOAN PRINCIPAL AND INTEREST ON WHICH TOTALS MORE THAN 25 MILLION IN NATIONAL OVERTHECOUNTER TRADING YESTERDAY CARL KARCHER ENTERPRISES SHARES CLOSED AT 8125 UP 50 CENTS 9310150068 931015 LETTERS TO THE EDITOR A LITERATE CANDIDATE GOES MOSTLY UNHEARD IN YOUR SEPT 29 EDITORIAL NEW YORK'S MARLIN BLACKOUT YOU TOOK TO TASK THE LOCAL PRINT MEDIA FOR FAILING TO GIVE GEORGE MARLIN HIS DUE AS CANDIDATE FOR MAYOR ON THE CONSERVATIVE AND RIGHTTOLIFE LINES SO HOW COME YOU IGNORED OR SHOULD I SAY BLACKHOLED NEW YORK MAGAZINE'S FEATURE PROFILE OF MARLIN BACK IN JULY MUCH MORE IMPRESSIVE THAN MY BYLINE ON IT IS THAT THE ILLUSTRIOUS HARRY BENSON WAS ASSIGNED TO PHOTOGRAPH MR MARLIN NORMALLY MR BENSON IMMORTALIZES THE LIKES OF GLORIA VANDERBILT DONALD TRUMP AND EVEN THE FAMOUS LOVEBIRDS CATHERINE MCKINNON AND GEOFFREY MASSON IT IS STRANGE THAT MR MARLIN HASN'T RECEIVED MORE PRESS AND NOT ONLY BECAUSE HIS POLITICS ARE DISTINCTLY DIFFERENT FROM THE TWO CENTRIST CANDIDATES HE'S ALSO THE MOST LITERATE CANDIDATE TO COME ALONG SINCE WILLIAM BUCKLEY IMAGINE A MAYORAL CANDIDATE WHO'S BOTH A MUNICIPAL BOND PORTFOLIO MANAGER AND THE GENERAL EDITOR OF THE 45VOLUME WORKS OF CK CHESTERTON AND ONE WHO DESPITE HAVING BECOME WELLHEELED INSISTS ON LIVING IN THE BLUECOLLAR NEIGHBORHOOD OF RIDGEWOOD QUEENS MORE TO THE POINT MR MARLIN IS SERIOUS ENOUGH ABOUT HIS CAMPAIGN TO TAKE A LEAVE FROM HIS JOB AND CAMPAIGN FULLTIME ONE CAN TOSS ANY OR ALL OF MR MARLIN'S IDEAS RIGHT BACK AT HIM BUT FIRST THEY NEED TO BE HEARD 9310150067 931015 LEISURE & ARTS BOOKSHELF WHERE THE REAL AND THE IMAGINARY MINGLE BY EDWARD HOWER WHEN I WAS A TEACHER IN AFRICA MY STUDENTS SOMETIMES WENT FOR WALKS WITH ME THROUGH THE BUSH AND TOLD TALES ABOUT THE SPIRITS THEY SAID CAME OUT AT NIGHT THE SCHOOLBOYS SPOOKED EACH OTHER MORE THAN THEY DID ME STILL I SOMETIMES FELT PRESENCES AROUND ME THAT GAVE OFF TANGIBLE SENSATIONS OF DREAD AND WONDER LIKE COLD AND WARM AIR CURRENTS IN THE DARK PRESENCES I HADN'T ENCOUNTERED SINCE I FIRST READ TALES OF MAGIC AS A CHILD THESE FEELINGS RETURNED AS I READ BEN OKRI'S SONGS OF ENCHANTMENT DOUBLEDAY 297 PAGES 21 A SEQUEL TO HIS NOVEL THE FAMISHED ROAD WHICH WON BRITAIN'S BOOKER PRIZE IN 1991 NO ONE HAS INVOKED THE WORLD OF MAGICAL BEINGS MORE ELOQUENTLY THAN THIS NIGERIAN AUTHOR DRAWING ON THE RICH MYTHOLOGY OF THE YORUBA PEOPLE MR OKRI CREATES AN AFRICAN TOWN IN WHICH SPIRITS INTERACT FREELY WITH THE HUMAN INHABITANTS BRINGING THEM MIRACLES BUT ALSO CATACLYSMIC DISASTERS HIS NARRATOR A SCHOOLBOY NAMED AZARO A VERSION OF LAZARUS IS AN ABIKU A CHILD WHO ACCORDING TO YORUBA BELIEF IS DESTINED TO DIE YOUNG BE REBORN AND RETURN QUICKLY TO THE SPIRIT WORLD IN A HEARTBREAKING REPETITIVE CYCLE AN ABIKU IS ALSO A SYMBOL FOR NIGERIA ITSELF A YOUNG NATION OF SHORTLIVED GOVERNMENTS BROUGHT DOWN BY A SERIES OF MILITARY COUPS THE NATION'S POLITICAL NIGHTMARES FORM A SUBTEXT TO THE BOOK'S DARK VISION AZARO'S QUEST TO REMAIN AMONG THE LIVING FORMS PART OF WHAT COULD LOOSELY BE CALLED THE BOOK'S PLOT THE STORY OF HOW THE TOWNSPEOPLE GIVE IN TO CORRUPTION EXPERIENCE A BLOODY CONFLICT BETWEEN RIVAL POLITICAL PARTIES AND RECONSTRUCT THEIR LIVES ALSO PROVIDES STRUCTURE THOUGH NOTHING APPROACHING A CLEAR LINEAR PLOT LINE INSTEAD THE AUTHOR INTERWEAVES CYCLES OF EVENTS MOVING IN AND OUT OF REAL LIFE DREAMS AND HALLUCINATIONS IN SUCH A WAY THAT THEIR BOUNDARIES OFTEN BLUR THIS METHOD CAN HAVE A DISORIENTING EFFECT ON THE READER AND SOMETIMES I BUCKLED UNDER THE OVERLOAD OF SYNESTHETIC IMAGERY BUT I BELIEVE MR OKRI INTENDS TO DISRUPT OUR EXPECTATIONS PRODUCING A KIND OF READING EXPERIENCE THAT COMPELS US TO ACCEPT A WORLD WITHOUT THE USUAL DIVISIONS BETWEEN THE REAL AND THE IMAGINARY I KEPT TURNING PAGES IN ORDER TO BE DRAWN AGAIN AND AGAIN LIKE MR OKRI'S CHARACTERS INTO THE PHANTASMAGORICAL VISIONS WITH WHICH HE SURROUNDED ME WE RAN INTO A QUIVERING UNIVERSE RESPLENDENT AND SECRET AZARO REPORTS AS HE FOLLOWS HIS FATHER INTO A CAVERNOUS FOREST WE HURRIED THROUGH A SEPIA FOG THICK WITH HYBRID BEINGS THROUGH THE YELLOW VILLAGE OF INVISIBLE CROWS PAST SUSURRANT MARKETPLACES OF THE UNBORN AND INTO THE SPRAWLING GHOMMIDINFESTED ALABASTER LANDSCAPES OF THE RECENTLY DEAD MR OKRI PROVIDES SOME MEMORABLE CHARACTERS TO GUIDE US THROUGH HIS SURREAL WORLD AZARO IS BRAVE AFFECTIONATE AND WISE BEYOND HIS YEARS HIS FATHER A LOQUACIOUS IDEALIST WHO TRIES TO RALLY THE LOCAL BEGGARS INTO A PROTEST MOVEMENT BECOMES TEMPORARILY BEWITCHED BY HELEN A ONEEYED BEGGAR WHO IS FOLLOWED EVERYWHERE BY A CLOUD OF LUMINOUS MOTHS AZARO'S MOTHER WHO ENCHANTS HER SON WITH PROPHETIC FOLK TALES THROWS HER FAITHLESS HUSBAND OUT FOR MUCH OF THE BOOK HE IS DRIVEN TO THE DEPTHS OF MADNESS IN HIS EFFORTS TO WIN HER BACK THE TENDER MOMENTS OF RECONCILIATION THAT THE FAMILY SHARES PROVIDE SOME RELIEF FROM THE CHAOS OF WAR THAT ENGULFS THE TOWN WHILE SOLDIERS MASSACRE CIVILIANS THE COUNTRY'S POLITICAL ELITE GORGE THEMSELVES AT BANQUETS WHERE THE CHOICEST DELICACIES CHANGED INTO THE WRITHING SAVOURY INTESTINES OF THE DYING CHILDREN AND WOMEN WHICH WERE GOBBLED UP IN CELEBRATIONS WITHOUT END ECHOING THE MADNESS IN THE STREETS MADAME KOTO WHOSE ROWDY BAR IS THE POLITICIANS' HEADQUARTERS TURNS HERSELF INTO A DEMON WHO NAKED UNDER A GOLDEN NIGHTGOWN RIDES OVER THE ROOFTOPS ON A FIERY HORSE AN OLD BLIND MAN THE SPIRIT OF DEATH MESMERIZES CROWDS WITH HIS WEIRD HARMONICA MUSIC AND CHANGES HIMSELF INTO A VULTURE TO ACCOMPANY MADAME KOTO ON HER NOCTURNAL FLIGHTS AS POLITICIANS DISTORT AFRICAN MYTHS TO BRAINWASH THEIR CONSTITUENTS A TRADITIONAL YORUBA ENGUNGUN A MASQUERADE FIGURE BECOMES AN ENORMOUS JACKALHEADED MONSTER WHO SPIES THROUGH EYES LIKE TELEVISION CAMERAS INTO THE DAILY LIVES OF THE TOWNSPEOPLE JOURNEYS INTO ENCHANTED FORESTS AND SUBTERRANEAN CAVERNS ARE OF COURSE FORAYS INTO THE DEPTHS OF THE HUMAN PSYCHE HERE THE IMAGINATION CREATES MONSTERS AND ANGELS WHICH ARE RECOGNIZABLE IN ANY CULTURE AS EMBODIMENTS OF FEARS AND HOPES THOUGH SET IN AFRICA SONGS OF ENCHANTMENT HAS UNIVERSAL APPEAL THE SAME APPEAL THAT WILLIAM BLAKE'S SONGS HAD TO MY AFRICAN STUDENTS THE ONLY FLAW OCCURS WHEN THE AUTHOR TRIES TO FORCE HIS ANGELS TO EXPLAIN THEIR REDEEMING MESSAGES IN THE LAST FEW PAGES LIKE MOST LITERARY ANGELS THEY SPEAK IN NOBLE PLATITUDES BLAKE'S ANGELS OFTEN HAVE THE SAME PROBLEM THIS ASIDE SONGS OF ENCHANTMENT IS A BRILLIANT ACCOMPLISHMENT MR OKRI'S VISION IS THOUGHTFUL ORIGINAL AND UTTERLY FASCINATING HIS PROSE IS LUMINESCENT A GREAT PLEASURE TO READ LIKE THE FINEST LYRICAL POETRY MR HOWER'S LATEST NOVEL IS THE POMEGRANATE PRINCESS 9310150066 931015 LETTERS TO THE EDITOR CLINTON LOST THIS ONE BUT YOU CALL IT VICTORY WHY CAN'T YOU GET IT RIGHT WHY DO YOU INSIST THAT PRESIDENT CLINTON WON HOUSE APPROVAL FOR HIS COMPROMISE DON'T ASK DON'T TELL' POLICY ON HOMOSEXUALS IN THE MILITARY IT WAS NOT RIGHT WHEN YOU SAID IT IN JULY AND IT IS NOT RIGHT NOW LET ME SET THE RECORD STRAIGHT THE POLICY CODIFIED BY CONGRESS IS NOT REPEAT NOT THE CLINTON COMPROMISE SAM NUNN IS A GOOD DEMOCRAT AND HIS CLAIM THAT HE IS WRITING THE CLINTON POLICY INTO LAW IS A NICE GESTURE BUT IT DOES NOT HOLD UP UNDER SCRUTINY I HAVE DOCUMENTED NO LESS THAN 10 MAJOR SUBSTANTIVE DIFFERENCES BETWEEN THE NUNN LANGUAGE AND THE PRESIDENT'S PROPOSAL WHICH IS WHY AS THE ONLY LEGISLATOR TO INTRODUCE A BILL TO MAINTAIN THE BAN ON HOMOSEXUALS I WAS UNALTERABLY OPPOSED TO THE CLINTON COMPROMISE BUT HAVE WHOLEHEARTEDLY ENDORSED THE HOUSEPASSED LANGUAGE I CALL IT BAN PLUS PLEASE STOP TURNING CLINTON DEFEATS INTO VICTORIES 9310150065 931015 BUSINESS BRIEF RAYTHEON CO COMPANY POSTS 94 INCREASE IN PROFIT FOR THIRD QUARTER RAYTHEON CO CITING HIGHER PROFIT IN ALL BUSINESS SEGMENTS AND LOWER COSTS REPORTED A 94 INCREASE IN THIRDQUARTER EARNINGS ON FLAT SALES THE LEXINGTON MASS APPLIANCE AIRCRAFT AND DEFENSE CONCERN SAID THIRDQUARTER NET INCOME WAS 1708 MILLION OR 126 A SHARE COMPARED WITH 1561 MILLION OR 116 A SHARE A YEAR EARLIER SALES FOR THE QUARTER ENDED OCT 3 WERE 222 BILLION UP SLIGHTLY FROM 221 BILLION RAYTHEON SAID MOST OPERATIONS SHOWED IMPROVED SALES AND EARNINGS IT SAID SALES FOR THE ELECTRONICS SEGMENT DECLINED BECAUSE OF DELAYS IN THE RECEIPT OF INTERNATIONAL GOVERNMENT ORDERS FOR ELECTRONICS PRODUCTS RAYTHEON SAID EMPLOYMENT AT THE END OF THE QUARTER WAS 61000 DOWN FROM 66400 A YEAR EARLIER FOR THE NINE MONTHS RAYTHEON'S NET INCOME ROSE 91 TO 5076 MILLION OR 374 A SHARE COMPARED WITH 4651 MILLION OR 346 A SHARE A YEAR EARLIER SALES ROSE TO 669 BILLION FROM 666 BILLION 9310150064 931015 BUSINESS BRIEF MURPHY OIL CORP THIRDQUARTER NET INCOME IS PLACED AT 202 MILLION MURPHY OIL CORP EL DORADO ARK SAID IT EXPECTS THIRDQUARTER NET INCOME OF ABOUT 202 MILLION OR 45 CENTS A SHARE A YEAR EARLIER THE OIL AND NATURALGAS COMPANY'S NET WAS 171 MILLION OR 38 CENTS A SHARE INCLUDING GAINS TOTALING 122 MILLION OR 27 CENTS A SHARE FROM SETTLEMENT OF INCOME TAX MATTERS IN THE UNITED KINGDOM AND GABON MURPHY DIDN'T ESTIMATE REVENUE WHICH WAS 4255 MILLION A YEAR EARLIER IN THE FIRST NINE MONTHS MURPHY ESTIMATED EARNINGS AT 82 MILLION OR 183 A SHARE COMPARED WITH 743 MILLION OR 165 A SHARE AFTER THE TAX BENEFITS AND A GAIN OF 203 MILLION FROM DISCONTINUED OPERATIONS MURPHY SAID THE MOST RECENT QUARTER'S EARNINGS WERE AFFECTED BY WEAK CRUDE OIL PRICES AND OFFSETTING STRENGTH IN ITS NATURALGAS MARKETS ALSO MURPHY SAID ITS CANADIAN UNIT MURPHY OIL CO AGREED TO BUY A 5 SHARE IN THE SYNCRUDE OIL PROPERTIES OF NORTHERN ALBERTA FOR 114 MILLION PAYABLE OVER FIVE YEARS MURPHY ESTIMATED ITS SHARE OF THE RESERVES AT 80 MILLION BARRELS 9310150063 931015 WORLD MARKETS TOKYO PRICES END MIXED THOUGH NIKKEI HALTS DECLINES LONDON'S MAIN INDEX EKES OUT A RISE A WALL STREET JOURNAL NEWS ROUNDUP TOKYO PRICES ENDED NARROWLY MIXED THURSDAY IN THIN TRADING THOUGH THE BENCHMARK NIKKEI INDEX EDGED HIGHER FOLLOWING TWO CONSECUTIVE DECLINES LONDON SHARES AFTER HOVERING IN NEGATIVE TERRITORY FOR MOST OF THE SESSION MANAGED A LATE REBOUND AND THE MAIN MARKET GAUGE ENDED WITH A SMALL GAIN BUT THE FIRE STAYED LIT UNDER SEVERAL ASIAN AND PACIFIC BOURSES AS SEVERAL RANGING FROM SYDNEY TO HONG KONG AGAIN FINISHED AT NEW HIGHS WORLDWIDE STOCK PRICES FELL IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT 11307 DOWN 006 REFLECTING LOWER EUROPEAN AND ASIA/PACIFIC MARKETS AND HIGHER AMERICAN MARKETS TELEPHONE SYSTEMS STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT 13119 UP 441 OR 35 WITH MCI COMMUNICATIONS OF THE US POSTING AN 83 GAIN IN ITS LOCAL CURRENCY TOYS STOCKS TRAILED AT 10654 DOWN 283 OR 26 WITH NINTENDO OF JAPAN SLIDING 36 IN LOCAL CURRENCY IN TOKYO THE NIKKEI 225STOCK INDEX WHICH FELL 9891 POINTS WEDNESDAY ROSE 4441 TO 2008281 IN TRADING FRIDAY IN TOKYO THE NIKKEI INDEX ROSE 16451 POINTS TO CLOSE THE MORNING SESSION AT 2024732 THURSDAY'S FIRSTSECTION VOLUME WAS ESTIMATED AT 250 MILLION SHARES UP FROM 2335 MILLION A DAY EARLIER LOSERS TOPPED GAINERS 581417 THE TOKYO STOCK PRICE INDEX OR TOPIX OF ALL FIRSTSECTION ISSUES WHICH DROPPED 673 POINTS WEDNESDAY DECLINED 032 TO 164521 THE NIKKEI TRADED IN A TIGHT RANGE BETWEEN 1991189 AND 2009691 AMID A LACK OF FRESH ECONOMIC NEWS TO INSPIRE TRADING THOUGH PRESSURE EASED IN SELLING OF NIKKEI225 STOCKS THAT AREN'T IN THE NEWLY ANNOUNCED NIKKEI STOCK INDEX 300 SELLING BY CORPORATIONS AND INDIVIDUALS CLEARING MARGIN POSITIONS THOSE BOUGHT PARTLY WITH BORROWED FUNDS PUSHED THE 225STOCK INDEX TO ITS LOWS AT MIDMORNING SOME US HEDGE FUNDS INCREASED SHORT POSITIONS SELLING BORROWED STOCK ON A BET THAT THE MARKET WILL WEAKEN AND ALLOW THEM TO BUY THE STOCK AT LOWER PRICES AND POCKET THE DIFFERENCE AS PROFIT BUT THE NIKKEI REBOUNDED ABOVE 20000 IN AFTERNOON DEALINGS ON BUYING BY JAPANESE PUBLIC PENSION FUNDS RETAIL STOCKS FELL FOLLOWING DISMAL EARNINGS REPORTS BY SEVERAL COMPANIES REFLECTING THE CONTINUING SLUMP IN PERSONAL CONSUMPTION GAME MAKERS WHICH FORECAST LOWER EARNINGS ALSO WERE WEAK IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX ROSE 54 POINTS TO 30863 RECOVERING FROM AN INTRADAY LOSS OF 134 POINTS THOUGH MOST OF THE STOCKS IN THE INDEX FINISHED LOWER THE FT 30STOCK INDEX DROPPED 58 POINTS TO 23274 VOLUME WAS 6182 MILLION SHARES COMPARED WITH 6592 MILLION SHARES A DAY EARLIER THE BRITISH TELECOMMUNICATIONS SECTOR WAS A MAJOR PERFORMER AS INVESTORS WERE HEARTENED BY DEALS IN THE US TO CREATE INTERACTIVE INFORMATION NETWORKS AND BELIEVED THAT BRITISH COMPANIES WILL WANT TO JOIN THE RUSH TO DEVELOP THAT INDUSTRY BUT OTHERWISE SENTIMENT WAS DAMPED BY THE LATEST BRITISH FIGURES ON UNEMPLOYMENT WHICH EASED TO A SEASONALLY ADJUSTED 103 OF THE WORK FORCE IN SEPTEMBER FROM 104 IN AUGUST THIS ADDED TO GROWING DOUBTS ABOUT WHETHER THE GOVERNMENT NEEDS TO CUT INTEREST RATES FURTHER AND GAVE THE MARKET LITTLE REASON TO PUSH STOCKS HIGHER IN FRANKFURT SHARE PRICES DROPPED IN A CONSOLIDATION FOLLOWING THE MARKET'S RECENT BIG GAINS THE DAX 30STOCK INDEX FELL 1144 POINTS TO 199007 AFTER MOVING IN A NARROW EIGHTPOINT BAND IN RELATIVELY QUIET TRADING VOLUME WAS LOW AHEAD OF TODAY'S MONTHLY EXPIRATIONS ON THE FUTURES AND OPTIONS EXCHANGE IN PARIS ANXIETY ABOUT THE WEAKNESS OF THE FRENCH FRANC AND BEARISH SENTIMENT ABOUT THE FRENCH CENTRAL BANK'S CONTINUED TIGHT GRIP ON INTEREST RATES KEPT BUYERS AWAY SENDING STOCKS BROADLY LOWER IN AMSTERDAM PRICES FIRMED BOOSTED BY A STRONG US DOLLAR THOUGH MANY BLUE CHIPS ENDED LOWER BECAUSE OF PROFITTAKING IN MILAN SHARES EDGED DOWN AS INVESTORS CLOSED POSITIONS ON THE LAST DAY OF THE OCTOBER TRADING ACCOUNT IN MADRID STOCKS ADVANCED SHARPLY BOOSTED BY A REDUCTION IN SPAIN'S BENCHMARK INTEREST RATE TO 95 FROM 10 IN STOCKHOLM EQUITIES FELL IN ACTIVE TRADING AS SOME INVESTORS TOOK PROFITS AFTER THE MARKET SET AN ALLTIME HIGH THE PREVIOUS DAY IN ZURICH SHARES CLIMBED FUELED BY ROBUST INTEREST IN BANKING FOOD AND PHARMACEUTICAL STOCKS THE BANKING SECTOR'S GAINS STEM FROM EXPECTATIONS THAT EARNINGS GROWTH WILL BE HEFTY NEXT YEAR AS INTEREST RATES HEAD LOWER AND THE SWISS ECONOMY BEGINS TO PICK UP STEAM IN BRUSSELS STOCKS RALLIED ON THE GROWING PERCEPTION THAT THE BELGIAN GOVERNMENT'S STRONG CURRENCY POLICY IS A DEAD LETTER AND INTERESTRATE RELIEF IS IN THE OFFING THE MAIN INDEX CLIMBED 11 TO A TWOMONTH HIGH AND JUST 299 POINTS BELOW THE RECORD AMONG ASIAN AND PACIFIC MARKETS SYDNEY STOCKS SURGED BROADLY TAKING THE MAIN INDEX UP 11 TO A NEW SIXYEAR HIGH THE JUMP FOLLOWING A BREATHER MAINTAINED THE MARKET'S RECENT BULLISH TREND SUPPORTED BY STRONG INTEREST IN MEDIA AND SOME TRANSPORT ISSUES HONG KONG'S RALLY CONTINUED AS THE MAIN INDEX JUMPED 14 TO A RECORD FINISH ITS FOURTH IN A ROW ON A WAVE OF BLUECHIP BUYING BY OVERSEAS INSTITUTIONAL INVESTORS THE GAIN PROPELLED THE MARKET'S RISE THIS YEAR TO 53 UTILITIES WERE THE BIGGEST WINNERS ALONG WITH TELECOMMUNICATIONS STOCKS IN SINGAPORE SHARES ENDED HIGHER FOR THE FOURTH CONSECUTIVE SESSION AS AMPLE LIQUIDITY DROVE BLUE CHIPS HIGHER IN MANILA EQUITIES AGAIN ROSE TO A RECORD FINISH THEIR FOURTH IN A ROW AS THE BOURSE CONTINUED TO BE BUOYED BY OVERSEAS FUNDS THAT ARE SWITCHING TO EMERGING MARKETS AND THAT EXPECT THE PHILIPPINE EXCHANGE TO REVERSE ITS LAGGARD PERFORMANCE IN TAIPEI STOCKS ROSE A BIT IN HECTIC DEALINGS FOLLOWING THE DECISION BY A TAIWAN PARLIAMENTARY COMMITTEE TO HALVE THE STOCK TRANSACTION TAX TO 015 FROM 03 DESPITE STRONG OPPOSITION FROM THE FINANCE MINISTRY THE PROPOSAL REQUIRES APPROVAL BY THE FULL PARLIAMENT IN WELLINGTON SHARES STRENGTHENED SHARPLY IN BUSY TRADING LED BY THE PHONE SECTOR WHICH WAS DEEMED UNDERPRICED BUT SEOUL PRICES FELL AS CAUTIOUSNESS ABOUT TOO RAPID A RISE IN RECENT TRADING SESSIONS FORCED THE MARKET TO YIELD EARLY GAINS AMONG CORPORATE DEVELOPMENTS IN FRANKFURT LUFTHANSA ROSE 1 MARK TO 15450 MARKS 9641 THE AIRLINE WHICH IS 54OWNED BY THE GERMAN STATE AND WHICH FRGES FOR THE PAST YEAR TO STEM SOARING COSTS SIGNED AN AGREEMENT WITH ITS UNIONS CALLING FOR AN OVERALL WAGE INCREASE OF ABOUT 25 FOR NEXT YEAR THE ACCORD COVERS THE 49000 EMPLOYEES OF LUFTHANSA ITS CONDOR CHARTER AIRLINE UNIT AND ITS LUFTHANSA SERVICE GESELLSCHAFT CATERING SERVICE LUFTHANSA ALSO EXTRACTED A PROMISE FROM THE UNIONS TO DISCUSS WAYS TO IMPROVE PRODUCTIVITY ANY PAY BOOST THAT ISN'T OFFSET BY INCREASED PRODUCTIVITY WILL RESULT IN ADDITIONAL JOB LOSSES HERE ARE PRICE TRENDS ON THE WORLD'S MAJOR STOCK MARKETS AS CALCULATED BY MORGAN STANLEY CAPITAL INTERNATIONAL PERSPECTIVE GENEVA TO MAKE THEM DIRECTLY COMPARABLE EACH INDEX CALCULATED IN LOCAL CURRENCIES IS BASED ON THE CLOSE OF 1969 EQUALING 100 THE PERCENTAGE CHANGE IS SINCE YEAREND 9310150062 931015 LEISURE & ARTS THE GALLERY MIRO AT MOMA BY DEBORAH SOLOMON NEW YORK JOAN MIRO WAS THE MOST PRODIGIOUSLY GIFTED ARTIST OF THE SURREALIST MOVEMENT EVEN SO HE HAS OFTEN BEEN CHARACTERIZED AS A LIGHTWEIGHT A HAPPY SEER DIPPING INTO HIS UNCONSCIOUS TO BRING UP VISIONS OF STARRY SKIES AND DANCING STICK FIGURES BUT MIRO WAS NO FANCIFUL DREAMER AS A RETROSPECTIVE EXHIBITION OPENING SUNDAY HERE AT THE MUSEUM OF MODERN ART UNWITTINGLY REVEALS HIS WORK IS ROOTED FROM BEGINNING TO END IN THE MEMORY OF A SPECIFIC PLACE HIS NATIVE SPAIN MIRO WAS BORN IN BARCELONA IN 1893 AND WAS BURIED THERE 90 YEARS LATER AFTER A STAGGERINGLY PRODUCTIVE CAREER THE MOMA SHOW REFLECTS THIS WITH 150 PAINTINGS AND NEARLY TWICE AS MANY DRAWINGS PRINTS COLLAGES SCULPTURES ILLUSTRATED BOOKS AND EVEN CERAMICS IT COMMEMORATES THE ARTIST'S CENTENNIAL AND IS BEING BILLED AS THE LARGEST MIRO SHOW EVER HELD IN THIS COUNTRY WHAT THIS MEANS IS THAT IT MAY BE HARD TO SEE MIRO'S PICTURES WITHOUT PEERING AROUND SOME MUSEUMGOER'S HAIRDO BUT IT WILL STILL BE AN EYEOPENING CHANCE TO SEE MIRO WHOLE IN THE BEGINNING AND CRUCIALLY MIRO PAINTED SCENES OF MONTROIG THE MEDITERRANEAN VILLAGE NEAR BARCELONA WHERE HE HAD GROWN UP THE TOWN LIVED ON IN HIS IMAGINATION EVEN THOUGH HE WAS ALREADY PART OF THE SURREALIST COVEN ON THE RUE BLOMET IN PARIS THE FARM 19211922 HIS FIRST MASTERWORK IS A FASTIDIOUS INVENTORY OF THE OBJECTS IN HIS FAMILY'S BARNYARD EVERY WORN PEBBLE EVERY BLADE OF GRASS EVERY GOAT AND ROOSTER AND OVERTURNED MILK PAIL ARE MADE TO GLEAM WITH A THIN UNEARTHLY LIGHT LIKE SO MANY RELIGIOUS RELICS IN THE CENTER OF THE PICTURE RENDERED SO SMALL AS TO BE ALMOST UNNOTICEABLE AND YET HINTING AT SOME LARGER FAMILY CONFLICT A MOTHER BENDS OVER A WASHTUB HER BACK TURNED TO HER SCREAMING YOUNG SON WHO SQUATS NAKED NEARBY MIRO ALWAYS CLAIMED HIS WORK WAS NOT ABSTRACT BUT FIGURATIVE GIVEN HIS REPUTATION THAT MAY SOUND LIKE AN AVANTGARDIST'S PROVOCATION YET AS ONE PROCEEDS THROUGH THE MOMA SHOW THE IMAGERY OF THE FARM APPEARS AGAIN AND AGAIN IN APPARENTLY ABSTRACT WORKS WE SEE SPECIFIC MOTIFS LIKE A LADDER AND THE MOON AND A PROFUSION OF CREATURES SO TOO THE SEXUAL CONFLICT IMPLICIT IN THE IMAGE OF THE FARM BOY LONGING FOR HIS INATTENTIVE MOTHER FORESHADOWS THE MYTHIC WOMEN WHO FILL THE ARTIST'S LATER WORK IN THE FAMILY A DRAWING FROM 1924 A MOTHER AND SON ARE PARED DOWN TO AN EROTIC ESSENCE OF SPIDERY LINES AND DARK ORBS AMID THE TEEMING LIFE OF A SCHEMATIC MENAGERIE THE MAINSTREAM DISCUSSION OF MIRO HAS TENDED TO DOWNPLAY HIS CATALAN ROOTS IN FAVOR OF A FORMALIST APPROACH OPEN ANY ARTHISTORY TEXTBOOK AND YOU'RE LIKELY TO READ THAT MIRO'S MAIN ACHIEVEMENT WAS TO BRING ORGANIC LIFE TO THE DRY GEOMETRIES OF CUBISM THIS INNOVATION WAS BIG NEWS IN NEW YORK IN THE '40S AS IT INSPIRED AND HELPED LEGITIMIZE THE GESTURAL STYLE OF ABSTRACT EXPRESSIONISM MIRO WAS THEN MORE APPRECIATED IN AMERICA THAN ANYWHERE ELSE HIS FIRST RETROSPECTIVE IN 1941 WAS HELD NOT IN PARIS OR IN BARCELONA BUT RIGHT HERE AT MOMA AND THE FIRST MONOGRAPH DEVOTED TO HIS CAREER PUBLISHED IN 1948 WAS WRITTEN NOT BY MIRO'S SURREALIST CONFRERE ANDRE BRETON IN PARIS BUT BY CLEMENT GREENBERG THE DOWNTOEARTH BROOKLYNBORN CRITIC NO WONDER MIRO'S WORK IS SO OFTEN DEFINED IN TERMS OF ITS GRIP ON AMERICAN PAINTERS HE'S A KEY LINK BETWEEN THE CLOSING CHAPTERS OF EUROPEAN MODERNISM AND THE EMERGENCE OF A NEW YORK AVANTGARDE ARSHILE GORKY STOLE HIS TREMULOUS LINE ROBERT MOTHERWELL TOOK HIS BIOMORPHIC BLOBS AND JACKSON POLLOCK MADE OFF WITH HIS ALLOVER COMPOSITIONAL RHYTHMS BUT TO TREAT MIRO PRIMARILY AS A PROPHET OF ABSTRACT EXPRESSIONISM DOES HIM AN INJUSTICE ONE OF THE PLEASURES OF THIS SHOW IS THAT IT GIVES HIM BACK TO CATALONIA THE MIRO WHO EMERGES FROM THE EXHIBITION IS NOT MERELY A COOL FORMAL INNOVATOR BUT A MAN WHOSE INVENTIONS WERE BORN IN A SPIRIT OF OBSESSIVE LONGING FOR THE LAND AND LANDSCAPE THAT HAUNTED HIM TO THE END CAROLYN LANCHNER THE CURATOR OF THE SHOW WHICH IS UP UNTIL JAN 11 HAS SET OUT TO MAKE ANOTHER POINT ALTOGETHER THAT MIRO WASN'T THE SPONTANEOUS CREATOR HIS PAINTINGS MIGHT SEEM TO SUGGEST SHE ARGUES THAT HE OFTEN PLANNED BLOCKS OF WORKS IN ADVANCE INCLUDING HIS STARKLY SIMPLIFIED DREAM PAINTINGS FROM THE MID'20S THE MOMA SHOW IS THE FIRST TO EXAMINE THE ARTIST'S TENDENCY TO WORK IN SERIES AS WELL AS THE NOTEBOOK STUDIES THAT ASSISTED HIM TOWARD THAT END THIS APPROACH CAN SEEM OVERLY FUSSY TO SAY THAT MIRO GAVE GREAT THOUGHT EVEN TO HIS MOST IMPULSIVELOOKING CANVASES IS TO SAY THE OBVIOUS TRUE TALENT DOES NOT LET ANY SEAMS SHOW THE EXHIBITION IS ALSO TOO LARGE MIRO'S CAREER AFTER 1941 WHEN HE COMPLETED THE SMALL CALLIGRAPHIC COMPOSITIONS THAT MAKE UP HIS FAMOUS CONSTELLATION SERIES WAS A LONG SLIDE INTO DULLNESS INTERRUPTED ONLY BY THE ADVENTURE OF HIS CERAMICS BY THE '50S THE MOONS AND STARS AND WINGED BEASTIES SWIMMING THROUGH HIS WORK SEEM LESS THE RESULT OF REVERIE OR REMINISCENCE THAN INTERCHANGEABLE IMPERSONAL SYMBOLS WITH NO CONNECTION TO MIRO HIMSELF OR TO THE VITAL LINE OF IMAGERY RUNNING BACK TO MONTROIG IT IS THE GREAT IRONY OF MIRO'S CAREER THAT THIS MASTER OF FANTASY DREW SO MUCH INSPIRATION FROM THE MUNDANE SURROUNDINGS OF HIS FAMILY'S FARM HIS FELLOW SURREALISTS WITH THEIR MEETINGS AND MANIFESTOES PROGRAMMATICALLY DISDAINED THE REAL GLORIFYING INSTEAD THE HELTERSKELTER OF DREAMS AND SURELY NO ARTIST'S WORK SEEMS MORE DREAMY THAN THAT OF MIRO YET TO JUDGE FROM THIS ENCYCLOPEDIC EXHIBITION MIRO FOUND THE MYTHIC IN THE SPECIFIC IN THE GRIT OF THE CATALAN EARTH HE'S THE BEST SURREALIST BECAUSE IN HIS HEART HE REMAINED A REALIST 9310150061 931015 PERSEPTIVE FILES SUIT ALLEGING COMPETITORS VIOLATED TWO PATENTS BOSTON PERSEPTIVE BIOSYSTEMS INC FILED SUIT AGAINST SEPRACOR INC AND PHARMACIA BIOTECH INC COMPETITORS IN THE BIOLOGICALENGINEERING FIELD ALLEGING INFRINGEMENT OF TWO PATENTS COVERING A TECHNOLOGY FOR PURIFYING MOLECULES PERSEPTIVE'S LAWSUIT FILED IN FEDERAL COURT IN BOSTON SEEKS UNSPECIFIED DAMAGES AND CHARGES THAT SEPRACOR AND PHARMACIA COPIED ELEMENTS OF PERSEPTIVE'S POROS PRODUCT WHICH USES A PURIFYING TECHNIQUE KNOWN AS PERFUSION CHROMATOGRAPHY PERSEPTIVE CAMBRIDGE MASS DECLINED TO DISCLOSE SALES OF POROS WHICH HAS BEEN ON THE MARKET SINCE 1991 TIMOTHY BARBERICH CHIEF EXECUTIVE OF SEPRACOR CALLED PERSEPTIVE'S SUIT FRIVOLOUS AND SAID HIS COMPANY'S MOLECULE PURIFIER INTRODUCED IN APRIL IS SIGNIFICANTLY DIFFERENT THAN PERSEPTIVE'S HE SAID SEPRACOR MARLBORO MASS WILL VIGOROUSLY DEFEND ITS POSITION OFFICIALS AT PHARMACIA PISCATAWAY NJ SAID IT FILED SUIT TUESDAY AGAINST PERSEPTIVE IN FEDERAL COURT IN NEWARK SEEKING A DECLARATORY JUDGMENT THAT PHARMACIA ISN'T INFRINGING ON PERSEPTIVE'S PATENTS AND THAT PERSEPTIVE'S PATENTS AREN'T VALID OR ENFORCEABLE PHARMACIA IS A UNIT OF THE SWISS COMPANY PROCORDIA AB 9310150060 931015 NATIONAL STEEL HAD THIRDQUARTER LOSS OF 325 MILLION BY TIMOTHY AEPPEL STAFF REPORTER OF THE WALL STREET JOURNAL NATIONAL STEEL CORP REPORTED A WORSETHANEXPECTED THIRDQUARTER LOSS OF 325 MILLION OR 97 CENTS A SHARE CITING LABORRELATED EXPENSES AND POOR OPERATING PERFORMANCE THE LOSS ANNOUNCED AFTER MARKETS CLOSED WAS NEARLY DOUBLE THE PERSHARE DEFICIT OF 57 CENTS PROJECTED BY ANALYSTS AND UNDERSCORES SOME OF THE PROBLEMS CONFRONTING THE NATION'S FOURTHLARGEST STEELMAKER THE COMPANY WHICH WENT PUBLIC IN MARCH HAD TO SHUT DOWN ONE OF ITS FOUR BLAST FURNACES THE ENTIRE QUARTER FOR REPAIRS AND PAID 33 MILLION DURING THE PERIOD FOR EARLY RETIREMENT PACKAGES IN THE YEARAGO PERIOD THE COMPANY REPORTED A NET LOSS OF 111 MILLION OR ABOUT 61 CENTS A SHARE NATIONAL ALSO FACES A 590 MILLION CHARGE ARISING FROM NEW ACCOUNTING STANDARDS FOR RETIREEHEALTH BENEFITS WHICH THE COMPANY IS AMORTIZING OVER 20 YEARS THE THIRDQUARTER RESULTS INCLUDE A 164 MILLION OR 12 CENTS A SHARE CHARGE LINKED TO THIS CHANGE THIS IS A TROUBLED COMPANY SAID CHARLES BRADFORD AN ANALYST AT UBS SECURITIES SALES EDGED UP TO 6233 MILLION FROM 6152 MILLION A YEAR AGO BUT SHIPMENTS WERE DOWN 16 TO 1264000 TONS FROM 1284000 TONS IN THE SAME PERIOD OF 1992 RONALD H DOERR THE COMPANY'S PRESIDENT AND CHIEF EXECUTIVE SAID LABORRELATED EXPENSES CONTRIBUTING TO THE POOR RESULTS INCLUDED EXPENSES AND LOST SHIPMENTS FROM AN ONGOING STRIKE AGAINST A SUBSIDIARY NATIONAL STEEL PELLET CO HE ALSO SAID NATIONAL'S PRODUCTIVITY DECLINED BY AN UNSPECIFIED DEGREE IN THE THIRD QUARTER MR DOERR WAS NAMED CEO EARLIER IN THE DAY IN ADVANCE OF THE ALREADY ANNOUNCED YEAREND RETIREMENT OF CHAIRMAN KOKICHI HAGIWARA NATIONAL WHICH RECENTLY MOVED ITS HEADQUARTERS FROM PITTSBURGH TO MISHAWAKA IND IS 71OWNED BY JAPAN'S NKK CORP DALLASBASED NATIONAL INTERGROUP INC NATIONAL STEEL'S FORMER OWNER OLDS ANOTHER 11 NATIONAL WAS A PUBLIC COMPANY FROM 1929 TO 1983 WHEN IT BECAME A UNIT OF A NEW HOLDING NATIONAL INTERGROUP NKK BOUGHT 50 OF NATIONAL STEEL IN 1984 AND IN 1990 BOOSTED ITS STAKE TO 71 9310150059 931015 BUSINESS BRIEF ROCKY MOUNTAIN HELICOPTERS INC FIRM FILES FOR CHAPTER 11 CITING CREDITORS' DEMANDS ROCKY MOUNTAIN HELICOPTERS INC SAID IT FILED FOR PROTECTION UNDER CHAPTER 11 OF THE US BANKRUPTCY CODE THE PROVO UTAH AVIATIONSUPPORT COMPANY CITED LOSSES IN ITS HELICOPTERLOGGING OPERATIONS IN ALASKA AND OTHER PROBLEMS IT SAID CREDITORS HAVE REPEATEDLY DEMANDED PAYMENTS BUT A CASH SQUEEZE LEFT THE COMPANY UNABLE TO MEET THOSE DEMANDS ROCKY MOUNTAIN HELICOPTERS SAID IT IS CURRENTLY TRYING TO SELL ITS HELICOPTERLOGGING BUSINESS AND CERTAIN OTHER ASSETS FOR ITS FISCAL FIRST QUARTER ENDED JULY 31 THE COMPANY REPORTED A NET LOSS OF 67 MILLION OR 84 CENTS A SHARE ON REVENUE OF 183 MILLION THE COMPANY ANNOUNCED THE NEWS BEFORE THE MARKETS CLOSED IN NATIONAL OVERTHECOUNTER TRADING YESTERDAY ROCKY MOUNTAIN HELICOPTERS CLOSED AT 1 OFF 50 CENTS OR 33 9310150058 931015 HEARD ON THE STREET TANDY AFTER SURGING 25 OVER TWO MONTHS NOW IS EXPECTED TO REMAIN FLAT FOR A WHILE BY KYLE POPE STAFF REPORTER OF THE WALL STREET JOURNAL REALITY SEEMS TO BE SETTING IN AMONG TANDY INVESTORS SHARES OF THE FORT WORTH TEXAS ELECTRONICS RETAILER HAVE SURGED 25 IN THE PAST TWO MONTHS AS THE COMPANY MOVED TO BANISH THE FRUMPY IMAGE OF ITS FLAGSHIP RADIO SHACK CHAIN THE STOCK SAILED AS HIGH AS 39 3/8 LAST WEEK BUT IT HAS SINCE SLIPPED BACK TO 38 LEAVING INVESTORS TO WONDER IF THE BIG RIDE IS OVER FOR NOW THE STOCK WAS LIFTED BY A CORPORATE OVERHAUL AND INVESTORS' BELIEF THAT A NEW RADIO SHACK PRESIDENT WILL TURN THE CHAIN AROUND WHEN TANDY SOLD ITS COMPUTER MANUFACTURING BUSINESS EARLIER THIS YEAR TO AST RESEARCH FOR 115 MILLION WALL STREET SAW THE COMPANY WITH ITS GROWING COMPUTER CITY AND INCREDIBLE UNIVERSE RETAIL CHAINS AS A PROMISING PURE PLAY ON RETAILING THEY'VE FINALLY GOT SOMETHING THAT'S DIFFERENT AND SOMETHING WITH A LITTLE BIT OF PIZZAZZ SAYS JOHN CURTI VICE PRESIDENT OF SECURITIES CORP OF IOWA IN CEDAR RAPIDS BUT SOME ANALYSTS SAY PIZZAZZ WON'T BE ENOUGH TO DRIVE THE STOCK HIGHER AT LEAST IN THE SHORT RUN MERRILL LYNCH'S ROBERT ROTH RECENTLY RAISED HIS CURRENTYEAR PROFIT ESTIMATE BY 10 CENTS A SHARE TO 240 REFLECTING AN EXPECTED 7 JUMP IN ANNUAL SALES YET WITH THE STOCK TRADING AT AROUND 16 TIMES HIS ESTIMATE MR ROTH LIKE MANY ON THE STREET REMAINS NEUTRAL ON TANDY ANALYSTS EXPECT THE STOCK TO STAY RELATIVELY FLAT AT LEAST UNTIL THIRDQUARTER RESULTS ARE ANNOUNCED NEXT WEEK WALL STREET LOOKS FOR PROFIT OF 50 CENTS A SHARE ABOUT EVEN WITH THE YEARAGO QUARTER AFTER RESULTS ARE RESTATED TO REFLECT THE DIVESTITURE SOME INVESTORS MIGHT ASK WHY IS THE STOCK UP 25 IF YOU'RE GOING TO HAVE A FLAT QUARTER' MR ROTH SAID I THINK THERE'S SOME VULNERABILITY IN THE STOCK THE TANDY OF OLD IS CREDITED WITH A PIONEERING ROLE IN MASSMARKET ELECTRONICS AND TANDY INTRODUCED ONE OF THE WORLD'S FIRST PERSONAL COMPUTERS IN THE LATE 1970S BUT RECENT YEARS HAVE BEEN DISAPPOINTING SEVERAL NEW TECHNOLOGIES PITCHED BY THE COMPANY PROVED TO BE DUDS ITS PC BUSINESS LOST MONEY NEW RETAILING CONCEPTS FELL FLAT NET INCOME IN THE PAST FIVE YEARS FELL 40 RADIO SHACK'S GROWTH CAME TO A SCREECHING HALT BUT THE STREET APPLAUDED THE EXIT FROM COMPUTER MAKING SAYING THE OLD TANDY CONFUSED INVESTORS WITH ITS MIX OF COMPUTER MANUFACTURING DISTRIBUTION AND RETAILING ANALYSTS ALSO GIVE HIGH MARKS TO TANDY'S NEW DIRECTOR OF INVESTOR RELATIONS MARTIN O MOAD WHO SPENT THE PAST MONTH PITCHING THE COMPANY'S TRIMMEDDOWN LOOK ACROSS THE COUNTRY THE PITCH MONEY MANAGERS SAY AIMS TO COMPARE TANDY TO THE LIKES OF HULA HOOPS AND OVALTINEONETIME HASBEENS ON THEIR WAY TO A COMEBACK ANALYSTS SUCH AS SALOMON BROTHERS' JEFFREY FEINER HAVE BUMPED UP THEIR ESTIMATES OF TANDY'S FULLYEAR EARNINGS MR FEINER EXPECTS 245 A SHARE UP FROM AN EARLIER ESTIMATE OF 240 BUT THE SALOMON ANALYST ISN'T SURE TANDY'S STOCK IS GOING TO MOVE UP AGAIN UNTIL THE CHRISTMAS BUYING SEASON KICKS IN IT PROBABLY IS IN FOR A BREATHING SPELL RIGHT NOW HE SAYS WHILE THE COMPUTER CITY CHAIN OF SUPERSTORES HAS BEEN A HITSAMESTORE SALES ARE GROWING AT ABOUT A 50 PACE COMPARED WITH A YEAR EARLIER THE OPERATION IS ONLY TWO YEARS OLD AND FACES A GROWING NUMBER OF COMPETITORS MOST NOTABLY DALLAS'S FASTGROWING COMPUSA THE INCREDIBLE UNIVERSE MEGASTORES ARE ALSO IN THEIR INFANCY WITH THE FIRST OUTLETS JUST HITTING THEIR ONEYEAR ANNIVERSARIES TANDY HAS SAID THAT THE STORES ARE HITTING THE COMPANY'S TARGETED REVENUE OF 60 MILLION THIS YEAR BUT AREN'T EXPECTED TO TURN A PROFIT UNTIL 1994 RADIO SHACK THE COMPANY'S CASH COW FISCAL 1992 SALES 28 BILLION IS IN THE MIDST OF AN OVERHAUL FOCUSING ON SERVICES FOR COMPUTER NOVICES THE COMPANY CONCEDES THAT THE SPRAWLING 6500STORE CHAIN HASN'T MUCH ROOM FOR CONTINUED EXPANSION LEONARD ROBERTS A FORMER RESTAURANT EXECUTIVE HIRED IN JULY HAS VOWED TO REVERSE THE DECLINES IN SAMESTORE SALES POSTED IN RECENT YEARS WHILE THE NEW FORMATS SEEM TO HAVE CONSIDERABLE GROWTH POTENTIAL ANALYSTS TAKE A WAITANDSEE APPROACH TO TANDY'S LONGTERM PROSPECTS THIS COMPANY HAS NOT PUT TOGETHER MUCH OF A TRACK RECORD FOR THE LAST FOUR OR FIVE YEARS SAYS DENNIS TELZROW A RETAIL ANALYST AT THE PRINCIPAL/EPPLER GUERIN & TURNER IN DALLAS YEAR ENDED DEC 31 1992 9310150057 931015 BABY BELLS SEARCH FOR CABLE PARTNERS BUT GOOD MATCHES ARE HARD TO MAKE BY JOHN J KELLER AND DENNIS KNEALE STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK THE PROPOSED MEGAMERGER OF BELL ATLANTIC CORP AND TELECOMMUNICATIONS INC HAS PROPELLED THE OTHER SIX BABY BELLS ON A DESPERATE SEARCH FOR THEIR OWN CABLE SPOUSES BUT THE PICKINGS ARE SLIM THE PRICES ARE HIGH AND THE FIT MAY BE LESS THAN PERFECT NONE OF THE SIX BABY BELLS AS THEY WATCH BELL ATLANTIC UNDERTAKE ITS ACQUISITION OF THE NATION'S BIGGEST CABLE COMPANY WANTS TO END UP RELEGATED TO A SECONDRANK STATUS IN THE INTERACTIVE MULTIMEDIA REVOLUTION BUT THAT IS THE SCARY PROSPECT THEY FACE AS A RESULT OF THE BELL ATLANTICTCI DEAL THE TCI DEAL BLOWS THEM AWAY SAYS JACK B GRUBMAN TELECOMMUNICATIONS ANALYST AT PAINEWEBBER INC THEY MUST BE GOING CRAZY RIGHT NOW TRYING TO MATCH IT VIRTUALLY EVERY REGIONAL BELL COMPANY HAS LOOKED HARD AT BUYING A PIECE OF HOLLYWOOD OR A GROUP OF CABLE SYSTEMS BUT BELL ATLANTIC'S MOVE HAS SWEPT AWAY A PRIME BARRIER TO BIG PURCHASES BY PHONE COMPANIES IN THE PAST THE BABY BELLS FEARED THAT MAKING A BIG ACQUISITION WOULD HURT THEIR PERSHARE EARNINGS AND THUS SEND THEIR STOCK PRICES TUMBLING YET BELL ATLANTIC'S SHARES ARE UP 7625 OR 13 IN THE TWO DAYS SINCE IT ANNOUNCED THE TCI PACT EVEN THOUGH THE MOVE WILL DILUTE THE COMPANY'S PERSHARE EARNINGS BY ABOUT 35 IN THE FIRST YEAR IT'S BEEN A REAL EDUCATION SAYS CHUCK WILLIS EXECUTIVE VICE PRESIDENT AND AND CHIEF PLANNING OFFICER AT U S WEST INC AND ONE PRODUCT IS THAT THE REGIONAL BELL COMPANIES NOW THINK THEY HAVE MORE CAPACITY TO BUY THAN THEY FIRST DID HE ADDS WE'VE LEARNED JUST AS MUCH AS EVERYBODY ELSE DECLINING TO RULE OUT THE POSSIBILITY THAT U S WEST WILL ADD TO ITS CABLE PROPERTIES IT ALREADY OWNS 25 OF TIME WARNER INC'S ENTERTAINMENT AND CABLE SUBSIDIARY YESTERDAY TELECOMMUNICATIONS STOCKS RALLIED ON THE BELL ATLANTICTCI NEWS IN FACT THINGS BECAME SO FRENZIED THAT SOME INVESTMENT BANKERS WERE SAID TO BE FRANTICALLY CALLING OTHER BABY BELLS TO FIND ONE THAT WOULD TOP THE BELL ATLANTIC DEAL FOR TCI UNTIL THIS YEAR THE BABY BELLS HAD TAKEN ONLY BABY STEPS INTO THE INTERACTIVE REVOLUTION FOR THE MOST PART THE BELLS' INVESTMENTS AMOUNTED TO LITTLE MORE THAN SMALL CHANGE THAT BOUGHT THEM NO CONTROL AND LITTLE MULTIMEDIA EXPERTISE THE RISK IS THAT THESE CONSERVATIVE BETS COULD PROVE INADEQUATE IF TODAY'S PHONE CALLERS BECOME FULLFLEDGED MULTIMEDIA INTERACTORS NOW BELL ATLANTIC'S BID HAS RAISED THE ANTE INDUSTRY EXECUTIVES SAY BELLSOUTH CORP THE ATLANTA COMPANY THAT IS IN TALKS TO INVEST ABOUT 1 BILLION IN QVC NETWORK INC'S EFFORT TO OUTBID VIACOM INC FOR PARAMOUNT COMMUNICATIONS INC QUIETLY THREATENED TO MAKE A FULL BID ON ITS OWN UNLESS IT GETS MORE CONTROL OF A COMBINED COMPANY ONLY TWO OF THE SEVEN REGIONAL BELL COMPANIES HAVEN'T MADE A BIG MOVE AS YET PACIFIC TELESIS GROUP AND AMERITECH CORP BUT INDUSTRY EXECUTIVES SAY BOTH ARE IN THE HUNT ALTHOUGH PACTEL HAS BEEN OCCUPIED FOR MORE THAN A YEAR ON A PLANNED EQUITY OFFERING FOR ITS NEWER UNREGULATED BUSINESSES THE PRESIDENT OF PACTEL'S INFORMATIONSERVICES UNIT LEE CAMP SAYS THAT HIS COMPANY IS FULLY CAPABLE OF DOING SEVERAL DEALS AT ONCE AS ARE THE OTHER BABY BELLS EVEN AS BELL ATLANTIC WAS PUTTING THE FINISHING TOUCHES ON ITS PLANS TO ACQUIRE TCI AND LIBERTY MEDIA CORP IT ANNOUNCED A BILLIONDOLLAR INVESTMENT IN MEXICAN CELLULAR FIRM IUSACELL SOME INVESTMENT BANKERS HOWEVER CAUTION THAT THERE ARE FEW APPEALING COLLECTIONS OF CABLE SYSTEMS LEFT RIGHT NOW THERE'S A SCARCITY OF LARGE HIGHQUALITY INDEPENDENT CABLE PROPERTIES TCI'S NOW GONE TIME WARNER IS WITH U S WEST THE LIST GETS REASONABLY SLIM SAYS GREGG SEIBERT A MANAGING DIRECTOR AT MERRILL LYNCH & CO BUT PACTEL'S MR CAMP COUNTERS NOT EVERYBODY'S BEEN CHOSEN FOR A DANCE YET IT ISN'T ALL OVER ALL BELL EXECUTIVES KNOW THE SHORT LIST OF CABLE OPERATORS THAT BOAST A LARGE NUMBER OF HOUSEHOLDS CLUSTERED TOGETHER IN EASYTOSERVE CLUSTERS COMCAST CORP CONTINENTAL CABLEVISION INC AND CABLEVISION SYSTEMS CORP IT'S A MATTER OF WHERE AND PRICE SAYS FRED SALERNO VICE CHAIRMAN OF NYNEX CORP WHICH LAST WEEK SET PLANS TO INVEST 12 BILLION IN VIACOM HE WON'T CONFIRM SPECULATION THAT HIS COMPANY IS LOOKING AT HOW TO ALLY WITH CABLE SYSTEMS BEYOND THE VIACOM PROPERTIES WHICH REACH ONLY ONE MILLION HOMES YOU DON'T WANT SYSTEMS SCATTERED EVERYWHERE MR SALERNO ADDS IT IS BEST IF THEY ARE CONTIGUOUS BUT HE WORRIES THAT PRICES FOR CABLE SYSTEMS ARE TOO HIGH SAYING THAT IN MANY CASES NYNEX WOULD LIKE TO FORGO A HUGE ACQUISITION AND PERHAPS ALLY WITH CABLE COMPANIES IN OTHER REGIONS TO UPGRADE THEIR SYSTEMS TO COMPETE WITH RIVAL BELLS IN PHONE AND OTHER COMMUNICATION SERVICES THAT WOULD UNDERCUT THE PROFITS OF THE OTHER BABY BELLS FORMER SIBLINGS FROM THE DAYS WHEN THEY WERE PART OF AMERICAN TELEPHONE & TELEGRAPH CO THAT'S THE WAY IT'S GOING TO TURN OUT THAT'S WHAT THEY'RE DOING TO US LAST ONE IN LOSES MR SALERNO SAYS MR SALERNO WOULD WELL KNOW NYNEX'S MARKET INCLUDES NEW YORK AND IT IS UNDER ATTACK FROM CABLE WIRELESS AND ALTERNATE CARRIERS THAT BYPASS LOCAL SERVICE U S WEST IS LIKELY TO HELP TIME WARNER'S CABLE SYSTEMS IN THE AREA CARRY VOICE AND DATA NYNEX HAS BEEN VERY SLOW AS A COMPANY TO POSITION FOR THE FUTURE SAYS A RIVAL BELL EXECUTIVE BILLIONS OF DOLLARS ARE AIMED AT THEM COMPETITIVELY OTHER BELL COMPANIES FACE A SIMILAR ONSLAUGHT BY UPGRADING TCI CABLE SYSTEMS BELL ATLANTIC COULD PROVIDE LOCAL PHONE SERVICE TO UPWARD OF NINE MILLION HOMES IN 43 STATES WHERE OTHER BABY BELLS OPERATE COMPETITION IS HERE IT'S NOW WE'RE GOING TO HAVE TO DEAL WITH THAT SAYS LOUIS RUTIGLIANO VICE CHAIRMAN AT AMERITECH NONETHELESS AMERITECH AND THE OTHER BABY BELLS STILL CONTROL ABOUT 98 OF THE LOCAL PHONE TRAFFIC IN THEIR RESPECTIVE REGIONS PACTEL BASED IN SAN FRANCISCO IS SPENDING BILLIONS ON A CALIFORNIA FIRST STRATEGY TO TRANSFORM ITS PHONE NETWORK INTO A MULTIMEDIA SUPERHIGHWAY THE BELL ATLANTICTCI DEAL DOES PUT THEM IN OUR BACKYARD JUST LIKE THE U S WESTTIME WARNER DEAL EVERYBODY'S GONNA BE IN OUR BACKYARD SAYS PACTEL'S MR CAMP IN BELL ATLANTIC'S WAKE THE SIX OTHER BABY BELLS ARE EXPECTED TO INTENSIFY THEIR PUSH FOR FURTHER DEREGULATION TO LET THEM ENTER MARKETS FOR LONGDISTANCE CALLING AND OTHER SERVICES A BELLSOUTH SPOKESMAN DECLINING TO COMMENT ON WHETHER THE COMPANY FEELS NEW URGENCY TO BUY INTO CABLE ADDS IF THERE'S URGENCY HERE IT'S TO GET THE REGULATORY SITUATION TO CATCH UP WITH REALITY AND EVEN AS PHONE AND CABLE COMPANIES ONCE NEMESES NOW LOOK TO MERGE THE COSTS OF BUYING AND COMBINING NEW CABLE PROPERTIES MAY YET FORCE THE BELLS TO LOOK AT COMBINING WITH EACH OTHER THEY COULD MERGE TO GET A BIGGER GEOGRAPHIC FOOTPRINT BETTING THAT THERE WILL BE A LIFTING OF RESTRICTIONS THAT BAR THE BABY BELLS FROM GETTING INTO NEW SERVICES SUCH AS LONGDISTANCE SAYS KENNETH LEON AN ANALYST AT LEHMAN BROTHERS NEW YORK IT WOULD BE RELATIVELY CHEAP COMPARED WITH DOING A CABLE DEAL AND IT WOULD SAVE THEM ENOUGH MONEY TO GO AFTER PURE PROGRAMMING CHUCK LILLIS IS EXECUTIVE VICE PRESIDENT AND CHIEF PLANNING OFFICER AT U S WEST INC HIS NAME WAS MISSPELLED IN AN ARTICLE FRIDAY 9310150056 931015 SOUTHERN CALIFORNIA INDUSTRIES PREPARE FOR POLLUTIONCREDIT TRADING SYSTEM BY ANDY PASZTOR STAFF REPORTER OF THE WALL STREET JOURNAL LOS ANGELES SOUTHERN CALIFORNIA'S LEADING INDUSTRIES ARE EXPECTED TO TAKE A QUANTUM LEAP TODAY TOWARD THE FIRST WIDESPREAD TRADING OF AIRPOLLUTION CREDITS AS A STRATEGY TO CLEAN UP THE ENVIRONMENT NEARLY 400 OF THE LARGEST POLLUTION SOURCES IN THIS SMOGCHOKED AREA FROM PETROCHEMICAL AND AEROSPACE PLANTS TO MINING OPERATIONS AND ELECTRIC GENERATING STATIONS WILL BE INCLUDED IN THE NATION'S ONLY COMPREHENSIVE REGIONAL PROGRAM DESIGNED TO REDUCE THE COST OF COMPLIANCE WITH CLEANAIR LAWS THE MARKETBASED APPROACH WATCHED CLOSELY BY LOCAL ENFORCEMENT OFFICIALS IN CHICAGO HOUSTON BOSTON AND OTHER CITIES WILL ALLOW COMPANIES TO CHOOSE BETWEEN REDUCING POLLUTION FROM CERTAIN FACILITIES OR PURCHASING POLLUTION RIGHTS OR CREDITS FROM OTHER COMPANIES TO MEET INCREASINGLY STRICT LOCAL AIRQUALITY STANDARDS BUT AFTER THREE YEARS OF DEBATE AND A FLURRY OF LASTMINUTE CHANGES INTENDED TO APPEASE CRITICS THE PRECEDENTSETTING PLAN HAS MANY SMALLER COMPANIES AND ENVIRONMENTAL GROUPS UP IN ARMS SMALLBUSINESS INTERESTS COMPLAIN ABOUT THE PROGRAM'S MANDATORY NATURE AND EXTRA ENFORCEMENT BURDENS WHILE ENVIRONMENTALISTS ARGUE THAT IT EXEMPTS TOO MANY SOURCES AND SETS AN ARTIFICIALLY HIGH BENCHMARK TO MEASURE FUTURE EMISSIONS REDUCTIONS IN MANY CASES IT GIVES COMPANIES THREE OR FOUR YEARS OF NOT HAVING TO DO VERY MUCH TO ACTUALLY REDUCE EMISSIONS SAID VERONICA KUN A SENIOR ATTORNEY AT THE NATURAL RESOURCES DEFENSE COUNCIL ONE OF THE GROUPS CRITICAL OF WHAT IT CLAIMS ARE MAJOR LOOPHOLES THE COUNCIL CONTENDS FOR INSTANCE THAT OIL REFINERIES RECEIVED PREFERENTIAL TREATMENT UNDER THE LATEST VERSION OF THE PLAN AND THAT MANY OTHER COMPANIES MAY BE ABLE TO AVOID POLLUTION REDUCTIONS SIMPLY BY EARNING ENOUGH CREDITS THROUGH SCRAPPING OLD CARS OR CONTRIBUTING TO MASSTRANSIT PROJECTS EVEN SOME FEDERAL REGULATORS FEAR THAT THE EFFORT WHICH NOW COVERS ONLY SULFUR OXIDES AND NITROGEN OXIDES RATHER THAN THE HARDERTOCONTROL HYDROCARBON EMISSIONS ORIGINALLY CONTEMPLATED DOESN'T HAVE ENOUGH TEETH TO ENSURE COMPLIANCE SOME ENVIRONMENTAL ORGANIZATIONS HAVE THREATENED TO FILE SUIT AND THE ENVIRONMENTAL PROTECTION AGENCY COULD DEMAND ADDITIONAL CHANGES STILL TODAY'S EXPECTED VOTE BY THE BOARD OF THE SOUTH COAST AIR QUALITY MANAGEMENT DISTRICT MARKS A WATERSHED FOR THE CONCEPT OF BUYING AND SELLING AIRPOLLUTION RIGHTS THE NOTION HAS BEEN AROUND FOR YEARS AND THE CLINTON ADMINISTRATION HAS STRESSED ITS COMMITMENT TO THE IDEA BUT THE LOS ANGELES PLAN APPLIES TO MORE SOURCES AND CREATES MUCH STRONGER ECONOMIC INCENTIVES THAN ANY OF THE EARLIER VOLUNTARY PLANS OVER THE NEXT 10 YEARS PROPONENTS CONTEND THE PROGRAM WILL REDUCE POLLUTION FROM PARTICIPATING COMPANIES BY WELL MORE THAN 50 AT ROUGHLY HALF THE COST OF CONVENTIONAL ABATEMENT MEASURES I DON'T KNOW OF ANY WAY THAT WE CAN USE TRADITIONAL ENFORCEMENT MECHANISMS TO GET 75 OR 80 EMISSION REDUCTIONS FROM THESE SOURCES SAID ROB BRENNER A SENIOR EPA AIRPOLLUTION OFFICIAL IN WASHINGTON PROMINENT DEFENSE COMPANIES AND SCECORP THE REGION'S PRIMARY ELECTRIC UTILITY STAUNCHLY SUPPORT THE INITIATIVE IT'S THE ONLY LOGICAL STEP TO CLEAN UP THE LOS ANGELES BASIN SAID MICHAEL HERTEL SCECORP'S MANAGER OF ENVIRONMENTAL AFFAIRS INSTEAD OF THE GOVERNMENT PICKING WHICH POLLUTIONCONTROL TECHNOLOGY IS NEXT IN LINE THE MARKET WILL DETERMINE THE CHEAPEST AND BEST CONTROL STRATEGY HE SAID A PRIVATE COMPUTERAIDED AUCTION OF POLLUTION RIGHTS IS EXPECTED TO BE HELD IN JANUARY AFTER SETTING LONGTERM EMISSION REDUCTION GOALS THE PROPOSAL GIVES COMPANIES MAXIMUM FLEXIBILITY TO CHOOSE AMONG VARIOUS PLANTS AND EVEN AMONG PARTS OF THE SAME PLANT TO MEET THOSE LIMITS THE CONCEPT IS PARTICULARLY APPEALING IN LIGHT OF SOUTHERN CALIFORNIA'S LINGERING ECONOMIC WOES AND THE POLLUTIONCONTROL DISTRICT'S LEADERS HAVE TRIED TO SELL IT AS A PROBUSINESS MOVE REGIONAL AIRCONTROL OFFICIALS ALSO HAVE A HUGE POLITICAL AND PERSONAL STAKE IN THE TRADING PLAN SINCE THEY BASICALLY STOPPED DEVELOPING OTHER AIRPOLLUTION RULES AND REDUCED EMPHASIS ON COMPLIANCE EFFORTS DURING THE YEARS IT WAS BEING DRAFTED THE SOUTHERN CALIFORNIA GAS CO UNIT OF PACIFIC ENTERPRISES CHOREOGRAPHED AN 11THHOUR LOBBYING BLITZ ON BEHALF OF SMALL BUSINESS TO CUT THE TRADING PROGRAM NEARLY IN HALF IT'S A VERY FRIGHTENING NOTION FOR SMALLER COMPANIES TO TRADE IN THE MARKETPLACE SAID WARREN MITCHELL SOUTHERN CALIFORNIA GAS'S PRESIDENT THE EFFORTS LED BY THE UTILITY ARE LIKELY TO FAIL HOWEVER THOUGH SMALLER COMPANIES MAY BENEFIT FROM A PHASEIN PERIOD PROMPTED BY ITS CAMPAIGN OVERALL THE LOS ANGELESAREA MOVE IS BOUND TO CREATE AN UNPRECEDENTED MARKET FOR POLLUTION RIGHTS WE HAVE DESIGNED THE AUCTION TO MAKE IT RISKY FOR ELIGIBLE COMPANIES TO AVOID TRADING SAID JOSH MARGOLIS OF DAMES & MOORE A LOS ANGELES ENGINEERING FIRM 9310150055 931015 ECONOMY INFLATION CONTINUED LOW IN SEPTEMBER WHILE RETAIL SALES ROSE VERY SLIGHTLY BY MELISSA LEVY STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON INFLATION REMAINED LOW AND RETAIL SALES ROSE VERY SLIGHTLY IN SEPTEMBER THE GOVERNMENT SAID THE LABOR DEPARTMENT SAID ITS PRODUCER PRICE INDEX ROSE 02 LAST MONTH THE FIRST INCREASE SINCE APRIL THE INDEX HAD FALLEN 06 IN AUGUST MEANWHILE THE COMMERCE DEPARTMENT REPORTED RETAIL SALES ROSE 01 IN SEPTEMBER TO 17445 BILLION THE SIXTH MONTHLY INCREASE IN A ROW A 18 DROP IN AUTO SALES WAS OFFSET BY INCREASES ELSEWHERE JOSEPH LIRO CHIEF ECONOMIST FOR THE SG WARBURG CONSULTING FIRM IN NEW YORK SAID THE TWO REPORTS INDICATE THAT SLOW TO MODERATE GROWTH WILL HOLD PATTERN FOR THE FORESEEABLE FUTURE THE PRODUCER PRICE INDEX ESPECIALLY ENCOURAGED ANALYSTS BECAUSE IT INDICATES THAT INFLATION REMAINS LOW OVER THE PAST YEAR PRODUCER PRICES HAVE RISEN ONLY 05 EXCLUDING THE OFTEN VOLATILE PRICES OF FOOD AND ENERGY PRODUCER PRICES WERE UNCHANGED IN SEPTEMBER FOLLOWING A 1 DECLINE IN AUGUST MANY ECONOMISTS CONSIDER THIS TO BE A BETTER INDICATOR OF UNDERLYING INFLATION PATTERNS PRICES OF INTERMEDIATE OR PARTLY PROCESSED GOODS AND OF CRUDE GOODS OR RAW MATERIALS ALSO POINTED TO CONTINUED RESTRAINT INTERMEDIATE PRICES ROSE 01 IN SEPTEMBER WHILE PRICES OF CRUDE GOODS DROPPED 04 EXCLUDING FOOD AND ENERGY BOTH OF THESE INDEXES WERE UNCHANGED FROM AUGUST THE INFLATION ARITHMETIC IS VERY SIMPLE AND POSITIVE FINISHEDGOODS INFLATION IS MINUSCULE SAID RON SCHREIBMAN VICE PRESIDENT OF THE NATIONAL ASSOCIATION OF WHOLESALERDISTRIBUTORS CRUDE AND INTERMEDIATE PRICES CONTINUE TO BE WELL BEHAVED TOO SO INFLATION SHOULDN'T POSE A PROBLEM FOR BUSINESSES AND CUSTOMERS AT LEAST FOR THE NEARTERM FUTURE ANALYSTS SAID THE OUTLOOK FOR RETAIL SALES IS ALSO ENCOURAGING SALES IN AUGUST AND JULY WERE BOTH REVISED UPWARD TO INCREASES OF 05 THE DEPARTMENT ORIGINALLY ESTIMATED INCREASES OF 02 IN AUGUST AND 03 FOR JULY EXCLUDING AUTO SALES RETAIL SALES ROSE 06 IN SEPTEMBER THE FIGURES AREN'T ADJUSTED FOR INFLATION SALES AT DEPARTMENT APPAREL AND FURNITURE STORES WERE PARTICULARLY STRONG COOLER WEATHER IN MANY PARTS OF THE COUNTRY CAUSED MANY CONSUMERS TO MAKE PURCHASES IN SEPTEMBER THAT THEY MIGHT HAVE PUT OFF FOR ANOTHER MONTH OR SO SAID TRACY MULLIN PRESIDENT OF THE NATIONAL RETAIL FEDERATION THE GROUP STILL EXPECTS A MODERATE INCREASE OF 25 IN HOLIDAY RETAIL SALES SEPARATELY THE LABOR DEPARTMENT SAID INITIAL CLAIMS FOR STATE UNEMPLOYMENT BENEFITS ROSE 8000 LAST WEEK TO 329000 FROM A REVISED 321000 THE PREVIOUS WEEK CLAIMS DURING THE WEEK ENDED OCT 2 HAD BEEN ESTIMATED AT 320000 THE FOURWEEK MOVING AVERAGE FOR JOBLESS CLAIMS CONSIDERED A BETTER MEASURE OF LABORMARKET CONDITIONS WAS 329750 LAST WEEK UP 1250 FROM A REVISED 328500 THE WEEK BEFORE ALL FIGURES ARE ADJUSTED FOR SEASONAL VARIATIONS HERE ARE THE LABOR DEPARTMENT'S PRODUCER PRICE INDEXES 1982=100 FOR SEPTEMBER BEFORE SEASONAL ADJUSTMENT AND THE PERCENTAGE CHANGES FROM SEPTEMBER 1992 9310150054 931015 BUSINESS BRIEF NATIONAL GYPSUM CO LAFARGE COPPEE IS ACQUIRING ABOUT FOUR MILLION SHARES NATIONAL GYPSUM CO CHARLOTTE NC SAID LAFARGE COPPEE A PARISBASED CONSTRUCTIONMATERIALS COMPANY AGREED TO ACQUIRE APPROXIMATELY FOUR MILLION SHARES OF NATIONAL GYPSUM FOR ABOUT 75 MILLION LAFARGE COPPEE IS BUYING THE STAKE WHICH REPRESENTS ABOUT 20 OF THE SHARES OUTSTANDING FROM WATER STREET CORPORATE RECOVERY FUND I A LIMITED PARTNERSHIP ACCORDING TO NATIONAL GYPSUM A MAKER OF WALLBOARD AND RELATED PRODUCTS LAFARGE COPPEE HAS ALSO AGREED TO TRANSFER HALF OF ITS NEWLY ACQUIRED SHARES TO GOLDEN EAGLE INDUSTRIES INC AN INVESTMENT COMPANY IN CHARLOTTE NATIONAL GYPSUM DECLINED TO ELABORATE ON THE TRANSFER NATIONAL GYPSUM ALSO SAID THE CHAIRMAN OF GOLDEN EAGLE CD SPANGLER JR HAD BEEN ELECTED TO NATIONAL GYPSUM'S BOARD A PERSON REACHED AT MR SPANGLER'S RESIDENCE ALSO DECLINED TO COMMENT ON THE TRANSFER FROM LAFARGE COPPEE IN ADDITION TO MR SPANGLER BERNARD KASRIEL MANAGING DIRECTOR OF LAFARGE COPPEE WAS ELECTED YESTERDAY TO NATIONAL GYPSUM'S BOARD 9310150052 931015 BUSINESS BRIEF DUN & BRADSTREET CORP THIRDQUARTER PROFIT GREW STOCK BUYBACK IS PLANNED DUN & BRADSTREET CORP SAID THIRDQUARTER EARNINGS ROSE 57 DESPITE A DROP IN REVENUE AS THE COMPANY CONTINUED TO IMPROVE PRODUCTIVITY AND CUT COSTS THE INFORMATIONSERVICES COMPANY ALSO SAID IT WILL SOON BEGIN A PROGRAM TO BUY BACK 10 MILLION SHARES D&B WHICH HAS 1782 MILLION SHARES OUTSTANDING SAID THE PACE OF REPURCHASES WOULD BE DICTATED IN PART BY MARKET PRICE THE NEW YORK COMPANY SAID SHARES WILL BE REPURCHASED ON THE OPEN MARKET AND IN PRIVATELY NEGOTIATED TRANSACTIONS THE COMPANY EXPECTS TO REPURCHASE STOCK MAINLY WITH FUNDS RAISED EXTERNALLY D&B SAID NET INCOME ROSE TO 1585 MILLION OR 89 CENTS A SHARE FROM 150 MILLION OR 84 CENTS A SHARE A YEAR EARLIER REVENUE FELL 27 TO 116 BILLION D&B SAID THE INCREASE IN CORPORATE INCOME TAX CUT THIRDQUARTER NET BY 74 MILLION OR FOUR CENTS A SHARE THE COMPANY SAID REVENUE FELL BECAUSE OF WEAKNESS IN ITS DIRECTORY INFORMATION SERVICES AND SOFTWARE SERVICES GROUPS 9310150051 931015 WHO'S NEWS INTERNATIONAL BUSINESS MACHINES CORP INTERNATIONAL BUSINESS MACHINES CORP ARMONK NY PAUL M LOFTUS 39 YEARS OLD WAS NAMED TO THE NEWLY CREATED POST OF GENERAL MANAGER FOR MULTIMEDIA SYSTEMS MR LOFTUS FORMERLY PRESIDENT OF THE SERVICES SECTOR DIVISION OF APPLICATION SOLUTIONS WILL BE IN CHARGE OF COORDINATING PRODUCTS AND DEVELOPMENT AIMED AT THE GROWING VIDEOONDEMAND AND INTERACTIVE TELEVISION MARKET HE WILL REPORT TO BERNARD PUCKETT SENIOR VICE PRESIDENT FOR CORPORATE STRATEGY AND DEVELOPMENT 9310150050 931015 DIVIDEND BRIEF FOREST OIL CORP RIGHTS TO ACQUIRE PREFERRED TO BE GIVEN SHAREHOLDERS FOREST OIL CORP SAID IT HAS DECLARED A DIVIDEND DISTRIBUTION OF ONE PREFERREDSHARE PURCHASE RIGHT ON EACH COMMON SHARE OUTSTANDING THE DENVER COMPANY SAID THE SHAREHOLDERRIGHTS PLAN WHICH IS IN PART A STRATEGY IN THE EVENT OF A HOSTILETAKEOVER ATTEMPT ISN'T AN INTENTION THAT ONE IS IMMINENT WE ARE NOT AWARE OF ANY ATTEMPT TO GAIN CONTROL OF THE COMPANY OR DENY OUR SHAREHOLDERS THEIR RIGHT TO PARTICIPATE IN ANY SUCH DECISION SAID WILLIAM L DORN CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OFFICER FOREST OIL SAID THE SHAREHOLDER RIGHTS WILL BE EXERCISABLE ONLY IF A PERSON OR GROUP ACQUIRES 20 OR MORE OF THE COMPANY'S COMMON STOCK OR ANNOUNCES A TENDER OFFER THAT WOULD RESULT IN OWNERSHIP BY A PERSON OR GROUP OF 20 OF MORE AS OF JUNE 30 THE COMPANY HAD 162 MILLION COMMON SHARES OUTSTANDING THE DIVIDEND DISTRIBUTION WILL BE PAYABLE TO STOCK OF RECORD ON OCT 29 9310150049 931015 LOCKHEED'S THIRDQUARTER NET INCOME CLIMBED 36 AND SALES JUMPED 40 BY DAVID J JEFFERSON STAFF REPORTER OF THE WALL STREET JOURNAL CALABASAS CALIF LOCKHEED CORP'S NET INCOME CLIMBED 36 IN THE THIRD QUARTER TO 117 MILLION OR 185 A SHARE FROM 86 MILLION OR 140 A SHARE A YEAR EARLIER THE EARNINGS INCLUDED A GAIN OF 15 CENTS A SHARE FROM SEVERAL ONETIME ADJUSTMENTS AMONG WHICH WAS THE REVERSAL OF ABOUT 90 MILLION OF PREVIOUSLY RECOGNIZED PRETAX LOSSES FROM THE SETTLEMENT OF A DISPUTE WITH THE US NAVY OVER THE TERMINATION OF THE P7A ANTISUBMARINEWARFAREAIRCRAFT PROGRAM THAT WAS PARTIALLY OFFSET BY ONETIME CHARGES FOR THE DISCONTINUANCE OF LOCKHEED'S AIRCRAFT MODIFICATION AND MAINTENANCE OPERATIONS IN SAN BERNARDINO CALIF INCREASED COSTS FOR ITS BURBANK CALIF FACILITIES AND OTHER EXPENSES SALES FOR THE QUARTER ENDED SEPT 26 ROSE 40 TO 348 BILLION FROM 247 BILLION LOCKHEED SAID THE INCREASED RESULTS REFLECT THE PERFORMANCE OF THE FORT WORTH TEXASBASED TACTICAL FIGHTER BUSINESS IT ACQUIRED FROM GENERAL DYNAMICS CORP EARLIER THIS YEAR FORT WORTH WILL PLAY A KEY ROLE IN THE CORPORATION'S LONGTERM STRATEGY AS IT CONTINUES TO BUILD THE F16 AND MAKES A MAJOR CONTRIBUTION TO DEVELOPMENT OF THE F22 ADVANCED TACTICAL FIGHTER PROGRAM SAID LOCKHEED CHAIRMAN AND CHIEF EXECUTIVE OFFICER DANIEL TELLEP LOCKHEED CONTROLS TWOTHIRDS OF DEVELOPMENT WORK ON THE F22 WITH BOEING CO CONTROLLING THE REST FOR THE NINE MONTHS LOCKHEED EARNED 287 MILLION OR 457 A SHARE COMPARED WITH A YEAREARLIER NET LOSS OF 402 MILLION OR 648 A SHARE AFTER A CHARGE FOR A CHANGE IN ACCOUNTING SALES ROSE 30 TO 933 BILLION FROM 718 BILLION LOCKHEED'S DEFENSE WORK FOR THE US GOVERNMENT EASED TO 66 FROM 68 OF TOTAL SALES FOR THE FIRST NINE MONTHS OF THE YEAR WHILE SALES TO FOREIGN GOVERNMENTS ROSE TO 13 FROM 7 LOCKHEED SAID WORKFORCE CUTS CONTINUED IN THE THIRD QUARTER WITH TWOTHIRDS OF A PLANNED 9000PERSON REDUCTION COMPLETED BY THE END OF THE THIRD QUARTER TOTAL EMPLOYMENT AT QUARTER'S END WAS 86400 SEPARATELY THE NATIONAL AERONAUTICS AND SPACE ADMINISTRATION SELECTED LOCKHEED'S ENGINEERING & SCIENCES CO UNIT TO NEGOTIATE A CONTRACT FOR ENGINEERING ANALYTICAL SCIENTIFIC AND TECHNICAL SUPPORT SERVICES AT JOHNSON SPACE CENTER IN HOUSTON THE CONTRACT COULD BE WORTH 15 BILLION OVER FIVE YEARS LOCKHEED HAS DONE SUPPORT WORK FOR NASA IN HOUSTON OVER THE PAST 20 YEARS IN ADDITION LOCKHEED MISSILES & SPACE CO IN SUNNYVALE CALIF WAS AWARDED A 100 MILLION SUBCONTRACT FROM STANFORD UNIVERSITY TO BUILD THE SPACECRAFT FOR A NASA PHYSICS EXPERIMENT CALLED GRAVITY PROBE B WHICH IS DESIGNED TO TEST TWO CRUCIAL PREDICTIONS OF EINSTEIN'S GENERAL THEORY OF RELATIVITY IN LATE NEW YORK STOCK EXCHANGE COMPOSITE TRADING LOCKHEED TRADED AT 65875 UP 150 9310150048 931015 WHO'S NEWS MEDIPLEX GROUP INC MEDIPLEX GROUP INC WELLESLEY MASS JONATHAN S SHERWIN 42 YEARS OLD RESIGNED AS PRESIDENT EFFECTIVE OCT 31 TO PURSUE WHAT HE CALLED NEW OPPORTUNITIES THAT WILL LIKELY EMERGE FROM HEALTHCARE REFORM MEDIPLEX AN OPERATOR OF NURSING AND REHABILITATION FACILITIES SAID 46YEAROLD FREDERIC H JACOBS EXECUTIVE VICE PRESIDENT WILL SERVE AS INTERIM PRESIDENT UNTIL A PERMANENT SUCCESSOR IS NAMED LATER THIS YEAR MR SHERWIN WHO BECAME PRESIDENT TWO YEARS AGO WILL REMAIN ON MEDIPLEX'S BOARD THE COMPANY SAID 9310150047 931015 MARKETING BY LAURA BIRD MARKETERS HAVE FOUND A NEW WAY TO CONNECT WITH CONSUMERS OFFER FREE LONGDISTANCE TELEPHONE TIME SEND 10 PROOFS OF PURCHASE FROM BUDGET GOURMET FROZEN DINNERS TO PHILIP MORRIS'S KRAFT GENERAL FOODS AND GET A CARD GOOD FOR 12 FREE MINUTES OF LONGDISTANCE CALLS BUY THREE WARNERLAMBERT PRODUCTS AT A WALGREEN DRUGSTORE AND GET 20 MINUTES AND SARA LEE'S PLAYTEX APPAREL OFFERS FREE PHONE TIME TO BUYERS OF THE EIGHTEENHOUR BRA BUT NO NOT 18 HOURS JUST FIVE MINUTES TIME ON THE PHONE IS MORE ATTRACTIVE THAN ANOTHER COUPON FOR LISTERINE SAYS JOSEPH PANNULLO CHIEF EXECUTIVE OF INTERACTIVE TELEPHONE WHICH HELPS COMPANIES PUT TOGETHER PHONECALL PROMOTIONS PEOPLE USE THE PHONE MORE THAN THEY DO A LOT OF OTHER THINGS CONSUMERS COLLECT PROOFS OF PURCHASE SEND THEM TO THE MANUFACTURER AND RECEIVE A CARDBOARD PHONE CARD IN RETURN TO USE IT THEY MUST DIAL A TOLLFREE NUMBER PRINTED ON THE CARD THEN ENTER A PIN NUMBER THAT IS GOOD FOR A GIVEN NUMBER OF MINUTES REGARDLESS OF WHICH LONGDISTANCE CARRIER THEY USE THIS ARRANGEMENT OFFERS MARKETERS SEVERAL CHANCES TO REINFORCE THEIR MESSAGES FOR ONE THING EACH CARD IS A MINI AD THAT CONSUMERS LOOK AT EACH TIME THEY USE IT IN ADDITION KRAFT RUNS A PROMOTIONAL MESSAGE FOR BUDGET GOURMET THAT CALLERS MUST ENDURE BEFORE ENTERING THEIR PIN NUMBERS A SPOKESWOMAN SAYS IT'S TOO EARLY TO KNOW EXACT RESULTS OF THE PROMOTION BUT SHE CREDITS IT WITH PUSHING BUDGET GOURMET ENTREES TO A RECORD MARKET SHARE OF CLOSE TO 20 IN LATE SUMMER ALAN FALVEY DIRECTOR OF CONSUMER PROMOTION AT WARNERLAMBERT SAYS CONSUMERS LIKE THE INSTANT GRATIFICATION OF USING THE CARD FROM THEIR HOMES AND HAVE EXPRESSED INTEREST IN A LONGERTERM FREQUENTBUYER PROGRAM THAT WOULD LET THEM BUILD UP LONGDISTANCE TIME IN AN ACCOUNT BUT THE COMPANY IS STILL TINKERING WITH THE BEST WAY TO PROMOTE THE IDEA THE BIG HILL MR FALVEY SAYS IS OVERCOMING CONSUMERS' WORRIES THAT THEY'LL HAVE TO SWITCH THEIR LONGDISTANCE CARRIER TO PARTICIPATE WORD OF MOUTH IS THE BEST ADVERTISING TROUBLE IS THERE'S NO SURE WAY TO CREATE A BUZZ FOR A NEW PRODUCT BUT ONE COMPANY THINKS IT HAS COME CLOSE WITH A WORDOFMOUTH ADVERTISING NETWORK TAL INTERNATIONAL MARKETING MORRISTOWN NJ EMPLOYS 150 PLACEMENT AGENTS WHO RECRUIT LEADERS OF CIVIC EDUCATIONAL SPORTS ARTS AND EVEN SUPPORT GROUPS ACROSS THE COUNTRY TO DISTRIBUTE SAMPLES COUPONS AND SOMETIMES QUESTIONNAIRES TO MEMBERS DURING MEETINGS THE WORD OF MOUTH TAL SAYS FOLLOWS NATURALLY FOR EXAMPLE THE NEW JERSEY STATE BALLET'S BOARD SAMPLED CHILI MADE WITH MCILHENNY'S 7 SPICE CHILI BASE DIANE PHELPS DISTRIBUTED CORNNUTS CORN SNACKS TO HER JAZZERCISE CLASS IN HEARTLAND WIS AND WARNERLAMBERT USED THE PROGRAM TO DISTRIBUTE SAMPLES OF A POTENTIALLY AWKWARDTOADVERTISE PRODUCT REPLENZ VAGINAL MOISTURIZER KNOWING THAT THE PRODUCT RELIEVES UNCOMFORTABLE SIDE EFFECTS FREQUENTLY SUFFERED BY WOMEN UNDERGOING CHEMOTHERAPY FOR BREAST CANCER TAL TARGETED BREASTCANCER SUPPORT GROUPS HOWEVER ALLEN MCCUSKER PRESIDENT OF CONSULTING FIRM CANAAN PARISH GROUP NEW CANAAN CONN SAYS THE TAL SYSTEM ISN'T TRUE WORDOFMOUTH ADVERTISING WHICH BY DEFINITION CAN OCCUR ONLY OUTSIDE THE REACH OF CORPORATIONS CONSUMERS ARE CYNICAL AND THEY CAN SMELL A CORPORATE COMEON A MILE OFF HE SAYS WHEN YOU HAVE GROUP LEADERS HANDING OUT PRODUCTS OVER AND OVER THEN IT BECOMES NO DIFFERENT THAN A CRACKER WITH TUNA FISH AT THE SUPERMARKET BUT MARGOT TELEKI TAL'S PRESIDENT RESPONDS THAT HANDING OUT SAMPLES IN THE SUPERMARKET IS IMPRECISE AND BARBARA DANIELI VICE PRESIDENT OF THE NEW JERSEY BALLET COMPANY THAT SERVED CHILI SAYS SHE DOESN'T SENSE CONSUMER RESISTANCE MOST MOTHERS NEVER HAVE A PROBLEM FILLING OUT THE QUESTIONNAIRES SHE SAYS ONCE THEY'VE DONE IT ONE TIME THEY BEGIN TO LOOK FOR IT ADVERTISING DRAWS CROWDS TO THE MALL ON SATURDAY BUT CAN IT ALSO LURE THEM TO CHURCH ON SUNDAY EPISCOPAL CONGREGATIONS HAVE BEGUN RUNNING TELEVISION COMMERCIALS TO WOO BACK LAPSED EPISCOPALIANS THE ST LOUIS OFFICE OF D'ARCY MASIUS BENTON & BOWLES WHOSE OTHER CLIENTS INCLUDE ANHEUSERBUSCH CREATED THE SPOTS FOR THE EPISCOPAL RADIOTV FOUNDATION A NONPROFIT ATLANTA GROUP THAT PRODUCES TELEVISION AND RADIO PROGRAMMING INDEPENDENTLY OF THE EPISCOPAL CHURCH LOCAL CHURCHES AND DIOCESES HAVE RUN ADS IN THE PAST OFTEN AROUND THE CHRISTMAS AND EASTER HOLIDAYS BUT THE EPISCOPAL EFFORT IS MUCH MORE AMBITIOUS THAN PREVIOUS CAMPAIGNS THE FOUNDATION IS TARGETING WOMEN BETWEEN 25 AND 45 YEARS OLD RESEARCH SHOWED THEY WERE THE MOST LIKELY PROSPECTS TO RETURN TO CHURCH AND BRING THEIR FAMILIES LOCAL CONGREGATIONS RAISE MONEY TO BROADCAST THE ADS AS PAID ADVERTISING THE ADS SHOW MAJESTIC LANDSCAPES AND TELL VIEWERS WHAT RELIGION CAN DO FOR THEM IN ONE SHOWING MOUNTAINS A NARRATOR SAYS IF GOD CAN CREATE THESE PEAKS AND VALLEYS GOD IS BOUND TO UNDERSTAND YOURS RESPONSE TO THE CAMPAIGN WHICH IS ON THE AIR IN GEORGIA TENNESSEE OHIO AND IOWA IS DIFFICULT TO MEASURE SAYS THE FOUNDATION'S EXECUTIVE DIRECTOR THE REV CANON LOUIS C SCHUEDDIG BECAUSE MOST CHURCHES DON'T TAKE ATTENDANCE BUT THE PRODUCT SELL APPROACH MIGHT HELP REVERSE MEMBERSHIP DECLINES MATERIALISM ISN'T THE OPTION IT WAS FIVE YEARS AGO HE NOTES LUGGAGEMAKER SAMSONITE IS DEMONSTRATING SUITCASES TO PASSENGERS AT BIGCITY AIRPORTS SOME TRAVELERS CAN HAVE THEIR BAGS REPACKED BY A TRAVEL EXPERT AND WIN A FREE SUITCASE FOR THE INTRUSION NESTLE HAS TAKEN ONE OF ITS CANDY BRANDS INTO THE DAIRY CASE WITH LOWFAT BUTTERFINGER MILK WHICH THE COMPANY SAYS TASTES LIKE CHOCOLATE AND PEANUT BUTTER 9310150046 931015 BUSINESS BRIEF WESTERN WASTE INDUSTRIES LOSS IS POSTED FOR 12 MONTHS FINANCIAL ADVISER IS RETAINED WESTERN WASTE INDUSTRIES REPORTED A NET LOSS FOR ITS FISCAL YEAR OF 101 MILLION OR 73 CENTS A SHARE AND SAID IT RETAINED AN ADVISER TO HELP WITH CORPORATEDEVELOPMENT AND STRATEGICPLANNING ISSUES FOR ITS FOURTH QUARTER ENDED JUNE 30 WESTERN WASTE POSTED A NET LOSS OF 49 MILLION OR 35 CENTS A SHARE AFTER 11 MILLION IN PRETAX CHARGES IN THE YEAREARLIER QUARTER THE SOLIDWASTEDISPOSAL CONCERN HAD EARNINGS OF 22 MILLION OR 16 CENTS A SHARE ANNOUNCEMENT OF THE HIRING OF THE ADVISER SALOMON INC UNIT SALOMON BROTHERS INC CAME AFTER LAST WEEK'S COLLAPSE OF A PLAN BY HOUSTONBASED TRASH HAULER BROWNINGFERRIS INDUSTRIES INC TO ACQUIRE WESTERN WASTE IN COMPOSITE TRADING YESTERDAY ON THE BIG BOARD WESTERN WASTE CLOSED AT 11875 A SHARE UP 75 CENTS FOR THE YEAREARLIER FISCAL YEAR WESTERN WASTE HAD NET INCOME OF 24 MILLION OR 17 CENTS A SHARE 9310150045 931015 INTERNATIONAL JAPAN'S TECH GIANTS WAKE UP TO BIG US ACQUISITION LIKES OF SONY MATSUSHITA SCRAMBLE FOR KEY TO SHIFTING MULTIMEDIA KINGDOM THIS ARTICLE WAS PREPARED BY JACOB M SCHLESINGER DAVID P HAMILTON AND CRAIG FORMAN TOKYO JAPAN'S TECHNOLOGY GIANTS STUNNED BY THE SHOCK WAVES FROM AMERICA'S MULTIMEDIAMERGER MANIA ARE BEING FORCED TO GO BACK TO THE STRATEGIC DRAWING BOARD BELL ATLANTIC CORP'S PROPOSED ACQUISITION OF CABLE GIANT TELECOMMUNICATIONS INC UNDOES THE CAREFUL ASSUMPTIONS BY WHICH MANY JAPANESE ELECTRONICS COMPANIES PLOTTED THEIR FUTURES EXPECTING THAT CONTROL OVER HOLLYWOOD STUDIOS AND EXPERTISE IN CONSUMER ELECTRONICS WOULD BE THE KEYS TO THE MULTIMEDIA KINGDOM THE JAPANESE ARE NOW REALIZING THAT DISTRIBUTION CONTROL OVER THE NETWORKS THAT TRANSMIT INFORMATION MAY BE JUST AS IMPORTANT AS HARDWARE OR SOFTWARE AND IN SUCH NETWORKS THE JAPANESE PRESENCE IS VIRTUALLY NIL IF THE NEW PARADIGM EMERGING IS ONE OF VERTICAL INTEGRATION OF CONTENT AND DISTRIBUTION SAYS ONE INVESTMENT BANKER FAMILIAR WITH THE INDUSTRY THE JAPANESE COMPANIES DO NOT FIT GIANTS SUCH AS SONY CORP AND MATSUSHITA ELECTRIC INDUSTRIAL CO BOTH OF WHICH OWN A MAJOR US MOVIE STUDIO HAVE HARDWARE BUT NOT THE TV NETWORK HE SAYS WE ARE WORRYING ADMITS HIROYUKI MIZUNO A MATSUSHITA EXECUTIVE VICE PRESIDENT WHEN IT COMES TO TELECOM AND COMPUTERS THE US IS BEYOND US THE CHANGING LANDSCAPE IS ALREADY PROMPTING SOME PUBLIC REASSESSMENTS HERE JAPANESE BUREAUCRATS FOR INSTANCE ARE STARTING TO CONSIDER LOOSENING RESTRICTIONS ON NIPPON TELEGRAPH & TELEPHONE CORP THE NATION'S MAJOR DOMESTIC TELEPHONE COMPANY IN ORDER TO SPEED THE DEVELOPMENT OF JAPAN'S OWN STUNTED TELECOMMUNICATION NETWORKS MR MIZUNO TOO SAYS MATSUSHITA IS DISCUSSING A VARIETY OF ALLIANCES TO BROADEN THE COMPANY'S REACH ONE PERSON FAMILIAR WITH SONY AND MATSUSHITA SAYS BOTH ARE CONSIDERING SELLING STAKES IN THEIR ENTERTAINMENT UNITS IN RETURN FOR A SHARE IN THE NEW ALLIANCES MATSUSHITA DENIES IT IS CONSIDERING THE SALE OF ALL OR PART OF ITS STUDIO MCA INC WHILE SONY OFFICIALS IN TOKYO WOULDN'T COMMENT SONY OWNS SONY MUSIC AND SONY PICTURES INDEED THE VALUE OF THE STUDIOS MAY RISE POTENTIALLY ALLOWING THE JAPANESE OWNERS TO USE THE STAKES AS A BARGAINING CHIP TO OBTAIN THEIR OWN HOLDINGS IN TECHNOMEDIA EMPIRES AS BOUNDARIES BLUR IN THE INFORMATION BUSINESS BETWEEN HARDWARE AND SOFTWARE AND PRODUCTION AND DISTRIBUTION MANY ANALYSTS EXPECT MORE TIEUPS BETWEEN JAPANESE HARDWARE MAKERS AND US TELECOMMUNICATIONS COMPANIES THERE ARE RESTRICTIONS THAT COULD APPLY UNDER US REGULATIONS FOREIGN COMPANIES WOULD BE LIMITED TO OWNING 25 OF MOST BIG TELECOMMUNICATIONS CONCERNS THE FEDERAL COMMUNICATIONS COMMISSION SAID IT ALSO CAN'T GRANT A RADIO LICENSE TO A COMPANY OWNED BY A CORPORATION THAT HAS FOREIGNERS CONTROLLING MORE THAN ONEFOURTH OF ITS BOARD SEATS THOSE RULES APPLY TO MOST PHONE COMPANIES SINCE THEY GENERALLY HOLD COMMONCARRIER RADIO LICENSES AND TO TELEVISION NETWORKS AND STATIONS BUT NOT TO CABLE OPERATORS THE AGENCY SAID THOUGH RECESSION AND BURNT FINGERS FROM PREVIOUS EXPENSIVE US FORAYS MAKE THE JAPANESE HESITANT THE PRESSING QUESTION IS WHETHER THEY CAN AFFORD TO STAY AWAY WHAT'S HAPPENING IS UNPRECEDENTED SAYS AN AMERICAN BANKER IN TOKYO THE JAPANESE HAVEN'T YET GRASPED IT TODAY BUT THEY WILL TOMORROW ROBERT TOWNSEND A PARTNER WITH THE US LAW FIRM MORRISON & FOERSTER IN TOKYO SAYS WE'LL SEE MORE JAPANESE ELECTRONICS COMPANIES INVOLVED WITH US PARTNERSHIPS IN THE NEXT YEAR INDEED HIS FIRM JUST HELD A MULTIMEDIA SEMINAR ATTENDED BY MORE THAN 100 COMPANIES AND ORGANIZATIONS MOST OF THEM JAPANESE THE LIST OF JAPANESE COMPANIES POTENTIALLY INTERESTED IN AND AFFECTED BY THE SHIFTING INFORMATIONINDUSTRY LANDSCAPE IS AS POWERFUL AS IT IS LONG BEYOND SONY AND MATSUSHITA IT INCLUDES HITACHI LTD WHICH IS GENERALLY SUSPICIOUS OF MERGERS AND TOSHIBA CORP WHICH ISN'T TOSHIBA WITH TRADING COMPANY ITOCHU CORP OWNS A MAJOR STAKE IN TIME WARNER INC'S ENTERTAINMENT UNIT PART OF A SPRAWLING CONGLOMERATE THAT SPANS PRODUCTION OF MAGAZINES AND SOFTWARE AND DISTRIBUTION VIA CABLE INDEED THE INVESTMENT IN TIME WARNER MAY NOW PROVE TO HAVE BEEN THE SMARTEST JAPANESE STAKE SUDDENLY OUR INVESTMENT IN TIME WARNER LOOKS LIKE THE BEST THING THAT EVER HAPPENED SAYS ITOCHU'S JAY W CHAI CHIEF EXECUTIVE FOR INTERNATIONAL OPERATIONS INVESTMENT BANKERS ARE ALREADY CIRCLING FOR INSTANCE VIDEOGAME MAKER NINTENDO CORP SAYS IT IS FREQUENTLY CONTACTED BY POTENTIAL SUITORS AN OFFICIAL ADDS THE COMPANY HAS NO INTENTION TO BECOME A SOFTWARE SUPPLIER TO A US NETWORK OPERATOR NINTENDO RIVAL SEGA ENTERPRISES LTD WHICH HAS ITS OWN TIEUPS WITH TCI TIME WARNER AND AMERICAN TELEPHONE & TELEGRAPH CO SOUNDS MORE ENTHUSIASTIC SEGA IS USUALLY QUITE AGGRESSIVE WHEN IT COMES TO ALLIANCES A SPOKESMAN SAYS THOUGH IT HAS ANNOUNCED NO SPECIFIC PLANS THE NEW DIRECTION IN TELECOMMUNICATIONS ALSO HAS IMPLICATIONS FOR SUCH BEHEMOTHS AS COMPUTER AND TELECOMMUNICATIONEQUIPMENT MAKERS FUJITSU LTD AND NEC CORP BOTH COULD CONCEIVABLY BENEFIT FROM CLOSER RELATIONSHIPS WITH NETWORK OPERATORS NEITHER COMPANY HOWEVER WANTS ANY PART IN MULTIMEDIA'S GRAND NEW ALLIANCES FUJITSU'S FIRST INTEREST IN THIS MARKET IS AS AN EQUIPMENT SUPPLIER A SPOKESMAN SAYS GRANTED IT IS A DIFFICULT TIME FOR JAPANESE COMPANIES TO CONTEMPLATE BOLD EXPENSIVE NEW VENTURES THANKS TO RECESSION SATURATED MARKETS FOR THEIR CORE PRODUCTS AND A HIGH YEN THAT HAMPERS EXPORTS BY MAKING JAPANESE GOODS MORE EXPENSIVE OVERSEAS JAPAN'S ELECTRONICS COMPANIES ARE STRAPPED FOR CASH WHEN YOU'RE SCARED ABOUT LIVING THEN YOU DON'T CARE ABOUT YOUR STANDARD OF LIVING SAYS KAZUHIKO NISHI PRESIDENT OF ASCII CORP A PERSONAL COMPUTER SOFTWARE THE ISSUE FOR THE JAPANESE ELECTRONICS INDUSTRY THESE DAYS HE SAYS IS NOT WHAT TO WEAR IT'S WHAT TO EAT THEY'RE LIVING HAND TO MOUTH CRITICS SAY JAPAN'S TECHNOLOGY LEADERS HAVE ALWAYS BEEN TIMID IN PURSUING A STRATEGY BEYOND SIMPLY BUILDING GOOD FACTORIES SONY AND MATSUSHITA'S MOVIE STUDIOS ASIDE JAPANESE COMPANIES HAVEN'T SHOWN MUCH FORESIGHT IN BLENDING CONVENTIONALLY DISTINCT FIELDS OF TECHNOLOGY LIKEWISE WITH NEC IN THE MID1980S NEC ADOPTED A NEW CORPORATE SLOGANC&C FOR COMPUTERS AND COMMUNICATIONS TO EMPHASIZE ITS ABILITY TO STRADDLE BOTH FIELDS YET NEC ISN'T REALLY A PLAYER IN MULTIMEDIA THE ULTIMATE MERGING OF COMPUTERS AND COMMUNICATIONS RIGHT AT THE MOMENT WHERE VISIONS LIKE C&C WOULD REALLY PAY OFF THEY DON'T SEEM TO BE MOVING AGGRESSIVELY AHEAD SAID WILLIAM GATES CHAIRMAN OF MICROSOFT CORP IN AN INTERVIEW EARLY THIS YEAR DESPITE THE FEAR OF BEING SHUT OUT OR LEFT BEHIND JAPANESE COMPANIES HAVING SPENT HEAVILY IN THE LATE 1980S AND EARLY 1990S ARE ALSO WARY ABOUT JUMPING INTO A NEW CRAZE JAPANESE EXECUTIVES WERE FIRST PRAISED FOR THE BRILLIANCE OF THEIR HOLLYWOOD INVESTMENTS THEN ROASTED FOR OVERSPENDING ON A VAGUE PREMISE THEY ARE WARY THAT TODAY'S TECHNOLOGY FAD COULD ALSO TURN SOUR WHAT BULKS LARGE IN SONY'S MIND IS THE BETAMAX SAYS AN INDUSTRY OFFICIAL THE BETAMAX WAS CONSIDERED A SUPERIOR HOME VIDEO TECHNOLOGY BUT WAS MADE OBSOLETE BY THE RIVAL VHS STANDARD IN SEEMINGLY NO TIME 9310150044 931015 COX MAY PAY UP TO 1 BILLION FOR QVC STAKE INVESTMENT IS SAID CLOSE WOULD BOLSTER QVC'S BID TO BUY PARAMOUNT BY RANDALL SMITH AND JOHNNIE L ROBERTS STAFF REPORTERS OF THE WALL STREET JOURNAL QVC NETWORK INC APPEARED CLOSE TO OBTAINING AN INVESTMENT OF 500 MILLION TO 1 BILLION FROM COX ENTERPRISES INC FOR QVC'S TAKEOVER BID FOR PARAMOUNT COMMUNICATIONS INC ACCORDING TO PEOPLE FAMILIAR WITH THE TAKEOVER BATTLE QVC INTENSIFIED ITS NEGOTIATIONS WITH COX AND OTHER POTENTIAL INVESTORS ON A DAY WHEN THE MOMENTUM OF ITS PURSUIT OF PARAMOUNT SEEMED TO FALTER AND PARAMOUNT'S STOCK PRICE DECLINED IN THE WAKE OF THE ANNOUNCEMENT OF A PLANNED ACQUISITION OF ONE THE KEY BACKERS OF QVC AND ITS CHAIRMAN BARRY DILLER PARAMOUNT STOCK FELL 1125 A SHARE TO 7625 IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE YESTERDAY STOCK TRADERS SAID ONE REASON FOR THE DECLINE WAS A SERIES OF REMARKS BY JOHN MALONE PRESIDENT OF TELECOMMUNICATIONS INC INDICATING THAT QVC'S BID FOR PARAMOUNT HAD A LOWER PRIORITY THAN TCI'S PLANS TO MERGE WITH BELL ATLANTIC CORP THE REGIONAL BELL OPERATING COMPANY BUT OTHER TRADERS WERE SKEPTICAL SAYING THAT MR MALONE'S REMARKS PLUS REPORTS THAT HE MIGHT NEGOTIATE TO ACQUIRE PART INTERESTS IN MOVIE STUDIOS OWNED BY JAPANESE ELECTRONICS MANUFACTURERS MIGHT REPRESENT SOME FORM OF GAMESMANSHIP DESIGNED TO FAKE OUT QVC'S CABLE RIVAL VIACOM INC AN ACROSSTHEBOARD SURGE IN CABLETV STOCK PRICES INCLUDING VIACOM'S DURING THE PAST TWO DAYS SINCE THE TCI ANNOUNCEMENT HAS BOOSTED THE VALUE OF VIACOM'S BID FOR PARAMOUNT TO 81 BILLION OR 6850 A SHARE THAT INCREASE HAS NARROWED THE GAP TO 16 BILLION BETWEEN VIACOM'S BID AND QVC'S HIGHER OFFER OF 8157 A SHARE OR 97 BILLION VIACOM IS EXPECTED TO RAISE ITS BID IF NECESSARY TO COMPETE WITH QVC BUT PARAMOUNT STOCK HAS DECLINED DESPITE A RISE IN BOTH OF THE OFFERS ON THE THEORY THAT QVC'S INTEREST IN BIDDING SUBSTANTIALLY HIGHER MAY HAVE BEEN REDUCED BY THE TCIBELL ATLANTIC ALLIANCE WHICH FACES TOUGH REGULATORY SCRUTINY EVEN WITHOUT THE ADDED BAGGAGE OF AN AFFILIATE COMPANY ACQUIRING A MOVIE TELEVISION AND PUBLISHING COMPANY THE POSSIBLE INVESTMENT BY COX AN ATLANTA CABLE COMPANY IS UNDERSTOOD TO TOTAL BETWEEN 500 MILLION AND 1 BILLION OTHER INVESTORS ALSO MAY BE JOINING QVC AS WELL AND ONE PERSON FAMILIAR WITH THE SITUATION SAID OTHERS MAY AGREE TO INVEST AT A LATER DATE IF QVC WINS THE BIDDING ALTHOUGH QVC ALSO HAS BEEN NEGOTIATING WITH BELLSOUTH CORP THAT REGIONAL BELL DOESN'T APPEAR TO BE INVESTING IN QVC AT THIS POINT ALTHOUGH IT STILL MAY LATER THE TCI TIE WITH BELL ATLANTIC A BELLSOUTH RIVAL MAY CHILL BELL SOUTH'S INTEREST IN QVC ALTHOUGH BELLSOUTH MAY STILL BID FOR PARAMOUNT INDEPENDENTLY PARAMOUNT HAS AGREED TO A FRIENDLY MERGER WITH VIACOM BUT IS SEEKING INFORMATION ABOUT QVC'S FINANCING UNDER PRESSURE FROM STOCKHOLDERS WHO WOULD PREFER THE HIGHER OFFER ANITA SHARPE IN ATLANTA CONTRIBUTED TO THIS ARTICLE 9310150043 931015 ECONOMY JAPAN OFFERS TO ALLOW SOME IMPORTING OF RICE BUT US REMAINS UNSATISFIED BY BOB DAVIS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON JAPAN OFFERED TO OPEN ITS SHUTTERED RICE MARKET TO SMALL AMOUNTS OF IMPORTS US OFFICIALS SAID PROVIDING WHAT COULD BECOME A SIGNIFICANT PSYCHOLOGICAL BOOST TO STALLED WORLD TRADE TALKS IN GENEVA BUT A CLINTON ADMINISTRATION OFFICIAL SAID THAT THE JAPANESE OFFER MADE DURING TALKS IN GENEVA SO FAR WAS INADEQUATE AND THE US WAS HOLDING OUT FOR MORE CONCESSIONS ON AGRICULTURAL AND OTHER ISSUES NO DEAL HAS BEEN CONSUMMATED THE OFFICIAL SAID IN TOKYO JAPAN'S AGRICULTURE MINISTRY DENIED THAT JAPAN HAS MADE ANY OFFER TO IMPORT RICE ON A REGULAR BASIS AGRICULTURE MINISTER EIJIRO HATA SAID THROUGH A SPOKESMAN FRIDAY MORNING THAT THERE HAS BEEN NO CHANGE IN JAPAN'S BAN ON RICE IMPORTS TOKYO IS HOWEVER ACCEPTING EMERGENCY IMPORTS THIS YEAR TO MAKE UP FOR AN UNUSUALLY BAD HARVEST JAPAN'S LONGSTANDING REFUSAL TO IMPORT RICE HAS BEEN A SYMBOL TO ITS TRADING PARTNERS OF A MADDENING SERIES OF TRADE RESTRICTIONS BY THE ISLAND NATION BUT IN JAPAN THE RICE PROHIBITION IS A SYMBOL OF SELFSUFFICIENCY AND A LINK TO AN AGRARIAN PAST THAT'S QUICKLY FADING THIS YEAR'S POOR RICE CROP HOWEVER MAY GIVE JAPAN'S NEW GOVERNMENT THE POLITICAL COVER IT NEEDS TO APPROVE IMPORTS AND AVOID MUCH OF A BACKLASH AT HOME ACCORDING TO US OFFICIALS THE JAPANESE OFFER DOESN'T MEET THE PROVISIONS OF A DRAFT TRADE AGREEMENT BEING NEGOTIATED UNDER THE AUSPICES OF THE GENERAL AGREEMENT ON TARIFFS AND TRADE IN GENEVA UNDER THE SOCALLED DUNKEL TEXT JAPAN WOULD BE REQUIRED TO IMMEDIATELY ALLOW IMPORTS EQUAL TO 3 OF ITS RICE CROP A LEVEL THAT WOULD GROW TO 5 OVER ABOUT SIX YEARS AT THE SAME TIME THE PROHIBITION BLOCKING OTHER RICE IMPORTS WOULD BE ELIMINATED AND BE REPLACED BY HIGH TARIFFS THAT JAPAN WOULD AGREE TO REDUCE OVER TIME JAPAN IS WILLING TO INCREASE ITS INITIAL MINIMUM IMPORT LEVEL TO 4 OF ITS MARKET AND TO INCREASE THAT OVER TIME TO ABOUT 8 US OFFICIALS SAID BUT JAPAN ISN'T WILLING TO FORMALLY DROP THE BAN ON THE REMAINDER AND SUBSTITUTE TARIFFS IMMEDIATELY INSTEAD IT WANTS TO BEGIN THE MOVE TO TARIFFS SIX YEARS AFTER THE AGREEMENT TAKES EFFECT THE US IS LOATH TO ACCEPT TUSE IT DEPARTS SUBSTANTIALLY FROM THE DUNKEL TEXT AND COULD ENCOURAGE OTHER PARTIES UNHAPPY WITH THE ACCORD PARTICULARLY THE FRENCH TO DEMAND THEIR OWN CHANGES IN ADDITION US OFFICIALS SAID THEY ARE LOOKING FOR JAPAN TO REDUCE BARRIERS TO IMPORTS OF US WOOD PRODUCTS AND AGREE TO PROVISIONS THAT PROTECT US DUMPING LAWS AN AGREEMENT TO OPEN THE JAPANESE RICE MARKET US OFFICIALS STRESSED MUST COME AS PART OF A PACKAGE OF CONCESSIONS THAT WILL HELP REVIVE THE GATT TALKS WHICH HAVE LINGERED NEAR DEATH FOR SEVEN YEARS 9310150042 931015 WHO'S NEWS BORLAND INTERNATIONAL INC BORLAND INTERNATIONAL INC SCOTTS VALLEY CALIF JACK BLOUNT SENIOR VICE PRESIDENT BUSINESS DEVELOPMENT HAS LEFT THAT POST AFTER LESS THAN THREE MONTHS AT THIS PERSONALCOMPUTERSOFTWARE COMPANY A BORLAND SPOKESMAN SAID MR BLOUNT RESIGNED BECAUSE OF DIFFERENCES WITH OTHER MEMBERS OF BORLAND'S SENIOR MANAGEMENT TEAM MR BLOUNT 41 YEARS OLD WOULDN'T COMMENT REFERRING QUESTIONS ON THE MATTER TO AN ATTORNEY WHO COULDN'T BE REACHED THE COMPANY SAID MR BLOUNT'S DUTIES WILL BE ASSUMED BY WILLIAM JORDAN 40 WHO WAS PROMOTED TO VICE PRESIDENT BUSINESS DEVELOPMENT FROM SENIOR DIRECTOR OF BUSINESS DEVELOPMENT AND DOUG ANTONE 40 SENIOR VICE PRESIDENT CORPORATE MARKETING 9310150041 931015 BUSINESS BRIEFS ALLIED WASTE INDUSTRIES INC ACQUIRED A RECYCLING FACILITY AND A TRANSFER STATION IN THE ST LOUIS MO AREA TERMS WEREN'T DISCLOSED NEW WORLD POWER CORP HAS RECEIVED A CONTRACT TO DEVELOP THE EL BORRACHO HYDROELECTRIC FACILITY IN MEXICO CITY FOR ABOUT 95 MILLION NEW WORLD ENTEC ITS MEXICAN UNIT WILL BUILD THE HYDRO FACILITY AND SELL THE POWER PRODUCED BY THE PLANT BOEING CO RECEIVED AN ORDER FROM DALLASBASED SOUTHWEST AIRLINES FOR A 737300 JETLINER VALUED AT ABOUT 38 MILLION THE AIRCRAFT WILL BE ONE OF 16 SUCH PLANES DELIVERED TO THE AIRLINE IN 1994 PERCEPTRON INC HAS RECEIVED 17 MILLION IN ORDERS FROM GENERAL MOTORS CORP TO SUPPLY THREE GM ASSEMBLY PLANTS WITH ITS CORE PRODUCT THE P1000 WHICH USES LASER TECHNOLOGY TO MEASURE LARGE FORMED PARTS DURING THE ASSEMBLY PROCESS 9310150040 931015 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN US AND EUROPEAN COMMUNITY TRADE OFFICIALS ENDED TWO DAYS OF TALKS IN BRUSSELS WITHOUT ANY EVIDENCE OF A BREAKTHROUGH TO SPUR AGREEMENT IN WORLD NEGOTIATIONS TO LIBERALIZE TRADE EACH SIDE CALLED ON THE OTHER TO MAKE IMPROVED OFFERS ON CUTTING TARIFFS AND IMPROVING MARKET ACCESS THE US TODAY IS TO UNVEIL NEW PROPOSALS FOR OPENING UP ITS OWN MARKET IN GOVERNMENT CONTRACTS THOUGH BOTH SIDES CITED PROGRESS ON ISSUES RANGING FROM STEEL TO THE FILM AND TELEVISION INDUSTRIES THE US CONTINUED TO INSIST IT WON'T REOPEN LAST YEAR'S ACCORD ON SLASHING SUBSIDIZED FARM EXPORTS FRANCE HAS THREATENED TO VETO A GLOBAL ACCORD UNDER THE GENERAL AGREEMENT ON TARIFFS AND TRADE UNLESS PROVISIONS ARE CHANGED TO REDUCE ITS EFFECT ON FRENCH FARMERS MEANWHILE DIPLOMATIC EFFORTS INTENSIFIED TO GET A GATT AGREEMENT BEFORE DEC 15 WHEN THE US ADMINISTRATION'S FASTTRACK NEGOTIATING MANDATE RUNS OUT RUSSIAN GOVERNMENT AGENCIES SHARPLY REDUCED IMPORTS OF FOOD PRODUCTS AND WILL ELIMINATE CENTRALIZED PURCHASES IN 1994 RUSSIA USED TO BUY LARGE AMOUNTS OF FOOD ABROAD AND SELL IT DOMESTICALLY AT A LOSS A HUGE BUDGET DRAIN THAT OFFICIALS HAVE MOVED TO PLUG SEPARATELY RUSSIA'S CENTRAL BANK WILL INTRODUCE RULES IN THE 1994 FIRST QUARTER TO ENSURE THAT EXPORTERS RETURN THEIR HARDCURRENCY EARNINGS TO THE REPUBLIC TO COMBAT CAPITAL FLIGHT WHICH HAS BEEN A MAJOR PROBLEM FOR RUSSIA'S UNSTABLE ECONOMY IN RECENT YEARS BANKS WILL MONITOR REPORTING OF EXPORT EARNINGS BELARUS REDUCED THE EXCHANGE RATE OF ITS RUBLE CURRENCY TO 3 FROM 15 AGAINST THE RUSSIAN RUBLE THE BELARUS CENTRAL BANK MADE THE CHANGE IN LIGHT OF OBLIGATIONS TO THE INTERNATIONAL MONETARY FUND WHICH HAS GRANTED A 300 MILLION CREDIT TO SUPPORT ECONOMIC REFORM IN THE FORMER SOVIET REPUBLIC ONE OF FIVE THAT HAVE AGREED ON ECONOMIC AND MONETARY UNION WITH RUSSIA MOSCOW INSISTS THAT RUBLE PARITY WOULD FUEL ALREADY DIZZYING RUSSIAN INFLATION THE RUSSIAN CURRENCY LAST TRADED AT 1194 RUBLES TO THE US DOLLAR BELARUS IS TRYING TO ATTRACT INVESTMENT IN SECTORS THAT CAN RESCUE ITS SHAKY ECONOMY MALAYSIA WILL INTRODUCE A BILL TO BROADEN TOBACCO CURBS AND BAN OR RESTRICT SMOKING IN PUBLIC AREAS STARTING NEXT MAY THE MEASURE WOULD FORBID THE SALE OF CIGARETTES TO YOUTHS UNDER 18 BAN TOBACCO ADS IN LOCAL MEDIA PROHIBIT CIGARETTE VENDING MACHINES AND REQUIRE BIGGER HEALTH WARNINGS ON CIGARETTE PACKS IT WOULD REQUIRE NONSMOKING SECTIONS IN MANY RESTAURANTS AND FORBID SMOKING IN PLACES SUCH AS ELEVATORS HOSPITALS SCHOOLS AND TAXIS LIGHTING UP IS ALREADY BANNED IN MOVIE THEATERS BUSES AND GOVERNMENT BUILDINGS BUT MOST MALAYSIANS IGNORE THE LAWS AND OFFENDERS ARE RARELY PROSECUTED PENALTIES ALLOW FOR A 1960 FINE OR TWO YEARS IN JAIL DENMARK'S INDUSTRY MINISTRY INTRODUCED A BILL TO LET STORES STAY OPEN MUCH LONGER THAN ALLOWED UNDER A RESTRICTIVE LAW COMMON IN EUROPE NOW MOST SHOPS MUST CLOSE BY 530 PM WEEKDAYS AND 2 PM SATURDAYS EXCEPT FOR 5 PM ON THE FIRST SATURDAY OF EACH MONTH THE LEGISLATION WOULD EXTEND CLOSING TIMES TO 8 PM WEEKDAYS AND PERMIT FULL SATURDAYAFTERNOON OPERATIONS EVERY WEEKEND CURRENT LAW EXEMPTS SOME RETAILERS SUCH AS BAKERIES NEWSPAPER KIOSKS AND FLORISTS FROM THE RESTRICTIVE SHOPPING HOURS CHINA AGREED TO MORE TALKS WITH THE US ON HUMAN RIGHTS BUT TERMED UNACCEPTABLE IMPOSING ANY CONDITIONS LINKING THE ISSUE TO BEIJING'S FAVORABLE TRADE STATUS WORTH BILLIONS OF DOLLARS A YEAR FOLLOWING TWO DAYS OF SINOUS TALKS ON THE DISPUTE CHINA SAID IT VIEWED HUMAN RIGHTS AS A SOVEREIGNTY MATTER AND WELCOMED A FAIR ASSESSMENT BY THE US TO ELIMINATE ANY MISUNDERSTANDINGS THE US HAS SAID RENEWAL NEXT YEAR OF CHINA'S PRIVILEGED STATUS ON TARIFFS WILL DEPEND ON HUMAN RIGHTS IMPROVEMENTS SEPARATELY IN A MOVE THAT COULD HELP COMBAT SMUGGLING CHINA OPENED LIMITED DIRECT TRADE WITH TAIWAN THOUGH THEIR DECADESLONG DIPLOMATIC GULF REMAINS CHINESE BUSINESSES MAY EXPORT OR IMPORT SHIPMENTS VALUED AT LESS THAN 200000 INDIRECT TRADE THROUGH THIRD COUNTRIES STILL IS CONSIDERABLE TOTALING 942 BILLION IN THIS YEAR'S FIRST NINE MONTHS MAKING TAIWAN CHINA'S FOURTHLARGEST TRADING PARTNER PICKPOCKETING ARRESTS IN TOKYO SO FAR THIS YEAR INCREASED 11 TO 289 FROM A YEAR EARLIER A HONG KONG FISHERMAN RUMORED TO HAVE CAUGHT A MERMAID RETURNED TO PORT BEMOANING A HOAX TO JINX HIS FAMILY IN MARITIME LORE MERMAIDS BRING BAD LUCK BUT THE THRONGS OF PEOPLE WHO TURNED OUT TO SEE THE CREATURE UNDERSCORED THE ENDURING POWER OF MYTH AND SUPERSTITION IN HONG KONG ONE OF ASIA'S MOST HIGHTECH AND AFFLUENT SOCIETIES 9310150039 931015 ABREAST OF THE MARKET INDUSTRIAL AVERAGE GAINS 1844 BROADBASED INDEXES SET RECORDS BY DAVE PETTIT AND MICHAEL SANTOLI SPECIAL TO THE WALL STREET JOURNAL NEW YORK STRENGTH IN CONSUMER PRODUCTS ISSUES AND MORE TAKEOVER SPECULATION IN THE CABLE AND COMMUNICATIONS GROUP CARRIED STOCKS SHARPLY HIGHER THE DOW JONES INDUSTRIAL AVERAGE JUMPED 1844 OR 051 TO 362163 BROADBASED INDEXES RALLIED THROUGH RECORDS THAT HAD STOOD SINCE LATE AUGUST AND THE NASDAQ MARKET SET A FOURTH STRAIGHT RECORD VOLUME ON THE NEW YORK STOCK EXCHANGE LEAPT TO 351895260 SHARES THE HEAVIEST SINCE SEPT 17 AND THE EIGHTHHEAVIEST EVER WEDNESDAY 290886830 SHARES CHANGED HANDS THE STANDARD & POOR'S 500STOCK INDEX GAINED 534 OR 116 TO 46683 THE NEW YORK STOCK EXCHANGE COMPOSITE ROSE 237 OR 092 TO 25912 AND THE DOW JONES EQUITY MARKET INDEX ADVANCED 470 OR 107 TO 44315 EACH ENDED AT A RECORD THE NASDAQ COMPOSITE INDEX SHOT UP 644 OR 083 TO 78541 IT HAS JUMPED 3 SINCE ITS MOST RECENT LOSS OCT 7 ECONOMIC READINGS YESTERDAY MORNING SHOWING SLOW STEADY ECONOMIC GROWTH AND LOW INFLATION SET A BRIGHT BACKDROP FOR TRADING BOND PRICES MEANWHILE RALLIED ON THE NEWS SENDING THE 30YEAR TREASURY UP MORE THAN 3/4 POINT AMONG DATA RELEASED YESTERDAY THE LABOR DEPARTMENT SAID ITS PRODUCER PRICE INDEX INCHED UP 02 LAST MONTH MATCHING EXPECTATIONS SOCALLED CORE INFLATION WHICH EXCLUDES FOOD AND ENERGY PRICES WAS UNCHANGED WELL BELOW FORECASTS CONSUMER PRODUCTS COMPANIES WERE BID SHARPLY HIGHER A MOVE ANALYSTS TIED TO BARGAIN HUNTING IN THE LONG DEPRESSED GROUP PHILIP MORRIS THE FOOD AND TOBACCO MAKER TOPPED THE BIG BOARD MOST ACTIVE LIST FOR A SECOND STRAIGHT DAY ADDING 7/8 TO 52 3/8 ON 85 MILLION SHARES OTHER ACTIVE GAINERS INCLUDED COCACOLA WHICH JUMPED 2 TO 44 1/8 PROCTER & GAMBLE WHICH RALLIED 2 1/4 TO 52 1/4 PEPSICO WHICH ADDED 1 TO 40 1/2 AND GENERAL MILLS WHICH SURGED 4 1/8 TO 64 7/8 THESE HAVE BEEN SOME OF THE WORSTPERFORMING GROUPS IN THE MARKET THIS YEAR SO AS INVESTORS TRY TO FIND UNEXPLOITED OPPORTUNITIES IT'S ONLY NATURAL FOR THEM TO LOOK TOWARD THESE COMPANIES SAID JAMES R SOLLOWAY DIRECTOR OF RESEARCH AT ARGUS RESEARCH BELL ATLANTIC'S ACCORD TO BUY TELECOMMUNICATIONS TRIGGERED ANOTHER SESSION OF FRANTIC BUYING IN STOCKS THAT INVESTORS SPECULATED WILL BE INVOLVED IN FUTURE TAKEOVERS AND TECHNOLOGICAL ADVANCES IN THE COMMUNICATION INDUSTRIES THAT BUYING ESPECIALLY FUELED THE NASDAQ MARKET WHERE MANY OF THESE COMPANIES TRADE THE OTHER BABY BELL STOCKS JOINED THE RALLY NYNEX ADVANCED 2 1/4 TO 45 1/4 SOUTHWESTERN BELL JUMPED 3 TO 43 BELLSOUTH CLIMBED 3 3/8 TO 60 5/8 AND U S WEST ROSE 2 1/8 TO 49 5/8 SHARES OF THE BIG THREE AUTO MAKERS ALSO LED THE CHARGE HIGHER AFTER CHRYSLER POSTED IMPROVED THIRDQUARTER EARNINGS CHRYSLER WAS UP 3 1/4 TO A 52WEEK HIGH OF 51 3/4 GENERAL MOTORS ADDED 1 1/8 TO 44 3/4 AND FORD MOTOR CLIMBED 2 1/4 TO 57 1/2 CHRYSLER HAD THIRDQUARTER EARNINGS FROM OPERATIONS OF 83 CENTS A SHARE WELL ABOVE THE 59 CENTS MEAN ESTIMATE OF ANALYSTS SURVEYED BY FIRST CALL A UNIT OF THOMSON FINANCIAL NETWORKS SOME ANALYSTS PREDICTED THE FOURTH QUARTER MIGHT BE THE BEST EVER FOR CHRYSLER KELLOGG JUMPED 3 3/8 TO 52 3/4 AFTER GOLDMAN SACHS ANALYST NOMI GHEZ REPEATED A BUY RATING ON THE FOOD MAKER SAYING THE STOCK IS ATTRACTIVE AT A PRICE NEAR 50 SEPARATELY KELLOGG IS EXPECTED TO REPORT THIRDQUARTER RESULTS TODAY RUBBERMAID ROSE 1 5/8 TO 36 IT HAD THIRDQUARTER PROFIT OF 37 CENTS A SHARE UP FROM 33 CENTS LAST YEAR THE WOOSTER OHIO RUBBER AND PLASTIC HOUSEWEAR PRODUCTS CONCERN PREDICTED RECORD INCREASES IN SALES AND EARNINGS FOR THE FOURTH QUARTER AND FULL YEAR COOPER TIRE & RUBBER SKIDDED 4 1/8 TO 20 3/4 THE FINDLAY OHIO COMPANY'S EARNINGS FELL TO 30 CENTS A SHARE IN THE THIRD QUARTER FROM 36 CENTS A YEAR AGO EARNINGS NEWS CHARGED TRADING IN SEVERAL ISSUES SENDING SOME BIG BANKS LOWER JP MORGAN LOST 3/4 TO 77 3/4 DESPITE POSTING EARNINGS 20 HIGHER THAN WALL STREET ESTIMATES ANALYSTS SAID INVESTORS APPARENTLY WERE DISAPPOINTED TRADING PROFITS FELL FROM THE PREVIOUS QUARTER FIRST UNION SLID 2 1/8 TO 44 THE CHARLOTTE NC BANKING COMPANY REPORTED LOWERTHANEXPECTED EARNINGS AND A DISAPPOINTING NETINTEREST MARGIN MOST OTHER MAJOR BANKS FELL WELLS FARGO LOST 5 3/4 TO 125 7/8 CITICORP DECREASED 1 1/4 TO 38 3/8 AND CHEMICAL BANKING EASED 1 TO 45 1/8 FIRST CHICAGO DECLINED 1 1/4 TO 48 3/4 LOCKHEED GAINED 1 1/2 TO 65 7/8 THE STANFORD CALIF DEFENSE AEROSPACE FIRM REPORTED THIRDQUARTER NET INCOME OF 185 COMPARED WITH 140 A YEAR EARLIER WOOLWORTH FELL AFTER REPORTEDLY OFFERING A DIM OUTLOOK AT A MEETING WITH ANALYSTS THAT LED SOME TO LOWER EARNINGS ESTIMATES ON WEDNESDAY THE COMPANY UNVEILED A RESTRUCTURING PLAN IN WHICH IT CLOSE 10 OF ITS STORES WORLDWIDE AND WILL RESULT IN A 366ASHARE CHARGE TO THIRDQUARTER EARNINGS THE STOCK LOST 1 7/8 ON HEAVY VOLUME TO CLOSE AT 24 1/4 9310150038 931015 SPACESTATION PROGRAM WITH RUSSIANS COULD SAVE US 35 BILLION AIDE SAYS BY BARBARA ROSEWICZ AND DAVID ROGERS STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON THE US COULD SAVE 35 BILLION BY BUILDING THE SPACE STATION WITH THE RUSSIANS THE HEAD OF THE NATIONAL AERONAUTICS AND SPACE ADMINISTRATION TOLD CONGRESS NASA ADMINISTRATOR DANIEL GOLDIN ALSO TESTIFIED THAT A JOINT SPACE STATION COULD BE FINISHED AND INHABITED BY US ASTRONAUTS BY APRIL 2001 TWO YEARS EARLIER THAN WITHOUT RUSSIAN COOPERATION IT APPEARS THOUGH THAT NASA WILL HAVE TO LIFT PIECES OF ITS SPACE STATION INTO ORBIT FOR ASSEMBLY WITHOUT THE HELP OF A MORE POWERFUL ADVANCED ROCKET MOTOR FOR THE SPACE SHUTTLE CONGRESS AFTER A PUBLIC INVESTMENT ESTIMATED IN EXCESS OF 15 BILLION IS POISED TO KILL THE ROCKET PROGRAM THAT HAS LONG BEEN CHAMPIONED BY POWERFUL SOUTHERN LAWMAKERS INCLUDING VICE PRESIDENT AL GORE THE WHITE HOUSE IS EXPECTED TO MAKE A DECISION BY YEAR END ON WHETHER TO BRING THE RUSSIANS IN AS PARTNER ON THE SPACESTATION PROJECT THE TWO FORMER SPACE RIVALS PROPOSED THIS PAST SUMMER TO EXPLORE BUILDING AN ORBITING LABORATORY TOGETHER THE US ALREADY HAS SPENT ABOUT 10 BILLION AND NINE YEARS DESIGNING AND REDESIGNING ITS SPACE STATION BUT SO FAR NOTHING HAS BEEN BUILT THE LATEST REDESIGN DOESN'T FACTOR IN RUSSIAN PARTNERSHIP AND WOULD COST AN ADDITIONAL 19 BILLION TO COMPLETE WHILE THE CLINTON ADMINISTRATION INSISTS A MERGER WOULD SAVE MONEY SOME EXPERTS QUESTION WHETHER SAVINGS CAN REALLY BE ACHIEVED GIVEN MOSCOW'S FINANCIAL PROBLEMS AND THE EXTRA ENGINEERING COSTS OF MERGING TWO DIFFERENT DESIGNS THE 35 BILLION IN SAVINGS PROJECTED BY MR GOLDIN WOULD BE REDUCED BY THE 400 MILLION THAT THE US ALREADY HAS PROMISED TO PAY OVER THE NEXT FOUR YEARS TO FLY US ASTRONAUTS AND EXPERIMENTS ON RUSSIA'S CURRENT MIR SPACE STATION ON CAPITOL HILL THE DECISION TO CANCEL THE ROCKET PROGRAM REFLECTS STRONG PRESSURE FROM A COALITION OF TAXPAYER AND ENVIRONMENTAL GROUPS WHO HAVE HELPED ORGANIZE RANKANDFILE HOUSE MEMBERS THIS YEAR BEHIND A SERIES OF BUDGET CUTS OPPOSED BY MOREENTRENCHED SENATE INTERESTS DESPITE A STRONGLY WORDED APPEAL BY PRESIDENT CLINTON A SIMILAR CHALLENGE FACES AN APPROPRIATIONS AGREEMENT REACHED YESTERDAY PRESERVING 640 MILLION FOR THE ENERGY DEPARTMENT'S SUPERCONDUCTING SUPER COLLIDER FRUSTRATED SENATORS HAVE RETALIATED IN SOME CASES BY ADOPTING FILIBUSTER TACTICS TO DELAY SPENDING BILLS CARRYING HOUSEBACKED INITIATIVES WESTERNSTATE REPUBLICANS VOWED TO BLOCK ACTION ON A COMPROMISE TO INCREASE GRAZING FEES ON FEDERAL LANDS AND INSTITUTE MANAGEMENT REFORMS THOUGH WESTERN DEMOCRATS HAVE EMBRACED THE AGREEMENT REPUBLICANS ARGUE THE ADMINISTRATION IS USING THE BUDGET MOMENTUM FOR THE GRAZING FEE AS A WAY TO DRIVE THROUGH LANDMARK STATUTORY CHANGES AFFECTING HUNDREDS OF MILLIONS OF ACRES OF FEDERAL LANDS 9310150037 931015 POLITICS & POLICY TV NETWORKS ARGUE BELL ATLANTIC DEAL MAKES THEIR CASE FOR REGULATORY RELIEF BY ELIZABETH JENSEN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK WITH THE PLANNED ACQUISITION OF CABLE GIANT TELECOMMUNICATIONS INC BY BELL ATLANTIC CO THE THREE MAJOR BROADCAST NETWORKS ARE HOPING THEY WILL FINALLY BE UNSHACKLED FROM FEDERAL REGULATIONS THAT HAVE KEPT THEM FROM JOINING THE MAD SCRAMBLE FOR MERGERS AND STRATEGIC PARTNERSHIPS IN THE MEDIA BUSINESS THE NETWORKS ARGUE THAT THOSE RESTRICTIONS PUT IN PLACE TO PREVENT THEM FROM DOMINATING THE TELEVISION BUSINESS ARE DOWNRIGHT ARCHAIC NOW THAT TELEPHONE GIANTS AND CABLE COMPANIES ARE MERGING TO CONTROL THE INFORMATION PIPELINE INTO AMERICAN HOMES IN THE SHORT TERM THE NETWORKS ARE PINNING THEIR HOPES ON MONDAY'S HEARING BEFORE US DISTRICT COURT JUDGE MANUEL REAL IN LOS ANGELES THE US JUSTICE DEPARTMENT CAPITAL CITIES/ABC INC CBS INC AND GENERAL ELECTRIC CO'S NBC ARE ASKING JUDGE REAL TO LIFT CONSENT DECREES THAT BAR THE NETWORKS FROM OWNING A FINANCIAL STAKE IN PROGRAMS PRODUCED BY OUTSIDERS AND IN SYNDICATING BOTH ORIGINAL PROGRAMS AND RERUNS THE PROPOSED BELL ATLANTICTCI DEAL AS WELL AS MOVIE AND PUBLISHING GIANT PARAMOUNT COMMUNICATIONS INC'S AGREEMENT TO BE ACQUIRED BY CABLE AND ENTERTAINMENT COMPANY VIACOM INC REALLY POINT OUT IN SUCH CLEAR TERMS HOW SILLY AND ANTIQUATED THESE RULES ARE SAID ROBERT C WRIGHT PRESIDENT AND CHIEF EXECUTIVE OFFICER OF NBC THEY COME FROM A DIFFERENT GENERATION ANY LIFTING OF THE RULES COULD RESULT IN SOME VERY SUBSTANTIAL MOVES FOR US HE ADDED IF THE CONSENT DECREES ARE LIFTED THE NETWORKS WILL IMMEDIATELY BE ABLE TO TAKE FINANCIAL STAKES IN SHOWS ALTHOUGH CURBS ON SYNDICATION WOULD REMAIN IN PLACE FOR ANOTHER TWO YEARS UNDER FEDERAL COMMUNICATIONS COMMISSION RULES BUT THE NETWORKS COULD BE FREED TO SNAP UP STUDIOS OR INDEPENDENT PRODUCTION COMPANIES AND COMPETE WITH GIANTS LIKE BELL ATLANTIC AND TIME WARNER INC THE RATIONALE IS THAT AT SOME POINT THE NETWORKS WILL BE A PART OF THESE THINGS AND ON TOP OF THAT THEY HAVE NICE NEARTERM FUNDAMENTALS INCLUDING PRETTY STRONG EARNINGS SAID DAVID LONDONER AN ANALYST AT WERTHEIM SCHRODER INVESTORS SEEM TO BE BETTING THAT RESTRICTIONS ON THE NETWORKS WILL BE EASED CAPITAL CITIES STOCK SLIPPED 25 CENTS YESTERDAY TO CLOSE AT 59275 IN NEW YORK STOCK EXCHANGE TRADING AFTER SOARING 1325 ON WEDNESDAY CBS ROSE 6375 TO 29150 YESTERDAY HELPED AS WELL BY A STRONG QUARTELY EARNINGS REPORT CBS JUMPED 875 WEDNESDAY AND KING WORLD PRODUCTIONS INC WHICH DISTRIBUTES PROGRAMS SUCH AS JEOPARDY AND WHEEL OF FORTUNE TO BROADCAST STATIONS IS TRADING NEAR ITS ALLTIME HIGH AS SOME TRADERS SPECULATED ABOUT A SALE OF THE COMPANY POSSIBLY TO A NETWORK KING WORLD SHARES CLOSED AT 3975 UP 375 CENTS THE NETWORKS RULED THE AIRWAVES WHEN THE REGULATIONS WERE PUT IN PLACE TO PROTECT HOLLYWOOD PRODUCERS BUT THEIR AUDIENCES HAVE BEEN GRADUALLY ERODED BY A SURGE IN CABLETV CHANNELS AND SYNDICATED TV PROGRAMS AND THE RULES RESTRICTING PROGRAM OWNERSHIP PREVENTED THE NETWORKS FROM ENTERING THE GAME IN THE 1980S WHEN HOLLYWOOD STUDIOS WERE BEING SNAPPED UP BY FOREIGN BUYERS OR SWALLOWED INTO CABLE AND ENTERTAINMENT GIANTS SUCH AS TIME WARNER STILL THE NETWORKS CONTINUE TO ENJOY A WIDER REACH THAN ANY OTHER SINGLE PROGRAM DISTRIBUTOR ON ANY GIVEN NIGHT OF THE WEEK THE NETWORKS CAN COMMAND 60 OF THE TELEVISION VIEWING AUDIENCE WITH SHOWS LIKE SEINFELD HOME IMPROVEMENT AND ROSEANNE WHILE THE NETWORKS HAVEN'T BEEN ABLE TO BUY A STUDIO OR SNAP UP CABLE SYSTEMS IN THE CITIES WHERE THEY OWN TELEVISION STATIONS THEY CAN AND HAVE QUIETLY CONCENTRATED ON INTERNAL OPPORTUNITIES MOSTLY THAT HAS MEANT EXPANDING THEIR PRODUCTION CAPABILITIES TO THE EXTENT THAT THE LAW ALLOWS WHERE ONCE THE NETWORKS WERE ESSENTIALLY DISTRIBUTION SERVICES FOR OTHER PEOPLE'S PROGRAMS EACH OF THE THREE NETWORKS IN THE LAST COUPLE YEARS HAS PUT THE FOCUS ON PRODUCING AS MUCH PROGRAMMING FOR THEMSELVES AND OTHERS AS POSSIBLE INDEED CAPITAL CITIES/ABC PRESIDENT AND CHIEF EXECUTIVE OFFICER DANIEL BURKE TOLD SHAREHOLDERS AT THE COMPANY'S ANNUAL MEETING IN MAY THAT OUR MOST IMPORTANT FUTURE OPPORTUNITY LIES IN EXPANDED TELEVISION PROGRAM PRODUCTION AND OWNERSHIP WITH ALL DIVISIONS OF THE COMPANY INVOLVED IN INCREASING ACTIVITY IN THAT AREA IN AUGUST THE COMPANY'S ABC TELEVISION NETWORK GROUP FORMED A SEPARATE UNIT DEALING SOLELY WITH INHOUSE PRODUCTION WHILE CAPITAL CITIES/ABC HAS CONCENTRATED ON INTERNAL GROWTH IT HAS ALSO SIGNALED FOR THE PAST YEAR THAT IT WOULD BE OPEN TO AN ACQUISITION IN THE 5 BILLION TO 8 BILLION RANGE EVEN IF THE NETWORKS AND THEIR AFFILIATED TV STATIONS CAN'T REMAIN DOMINANT IN PROGRAM DISTRIBUTION THE PRODUCTION OF PROGRAMS AND THE NETWORK'S EXPERTISE IN MARKETING THEM COULD STILL GIVE THE NETWORKS A VALUABLE STRATEGIC EDGE TELEPHONE AND CABLE COMPANIES MIGHT CONTROL THE DISTRIBUTION WIRES TO PEOPLE'S HOMES BUT THEY STILL NEED POPULAR PROGRAMMING TO FILL THE PIPELINE AND THEY HAVE LITTLE EXPERIENCE IN BROADBASED ENTERTAINMENT WE'RE PREPARED TO BE A VENDOR TO AS MANY PEOPLE AS HAVE CHANNELS NBC'S MR WRIGHT SAID SELLING NEWS AND INFORMATION AS WELL AS ENTERTAINMENT SHOWS THE VALUE OF A HIT TV PROGRAM IS GREATER TODAY THAT AT ANY TIME SAID JEFF EPSTEIN CHIEF FINANCIAL OFFICER OF KING WORLD ALL OF THIS EXCITEMENT ABOUT HOW TO GET PROGAMMING TO THE HOME POINTS OUT THAT PROGRAMMING IS THE SCARCE RESOURCE IN THE DISTRIBUTION SYSTEM 9310150036 931015 ARCO DROPS ITS CLAIM AGAINST ALASKA STARTS PRODUCTION AT OIL FIELD THE POINT MCINTYRE OIL FIELD ON ALASKA'S NORTH SLOPE BEGAN PRODUCTION YESTERDAY AFTER ATLANTIC RICHFIELD CO SECURED PERMISSION FROM ALASKA BY DROPPING A CLAIM TO CERTAIN STATE PAYMENTS PRODUCTION AT THE NEW FIELD JUST NORTH OF THE PRUDHOE BAY RESERVOIR IS EXPECTED TO REACH 80000 BARRELS A DAY WITHIN A FEW DAYS AND 100000 BARRELS DAILY BY NEXT YEAR STARTUP WAS DELAYED SINCE JULY PENDING STATE ACTION ON THE OWNERS' REQUEST THAT CERTAIN ARCANE OPERATING RULES IN EFFECT AT THE PRUDHOE BAY RESERVOIR BE EXTENDED TO POINT MCINTYRE ALASKA BALKED AT PAYING ROUGHLY 2 MILLION A YEAR TO ARCO AND ONE OF ITS PARTNERS A UNIT OF EXXON CORP AS PART OF THE OPERATING AGREEMENT THE DISPUTE DOESN'T INVOLVE A THIRD PARTNER BRITISH PETROLEUM PLC ARCO AND EXXON CLAIMED A RIGHT TO COMPENSATION FOR THEIR PROCESSING OF THE STATE'S SOCALLED ROYALTY OIL THE FEES WERE EXPECTED TO BE AROUND 79 CENTS A BARREL ABOUT ONE OF EVERY EIGHT BARRELS PRODUCED AT THE NEW FIELD AN ARCO SPOKESWOMAN SAID THE COMPANY BELIEVES IT IS ENTITLED TO THE FEES BUT DECIDED TO WAIVE ITS DEMAND TO GET PRODUCTION ROLLING IN HOUSTON A SPOKESMAN FOR EXXON SAID THE COMPANY PLANS TO PURSUE ITS CLAIM IN COURT LOS ANGELESBASED ARCO IS THE OPERATOR AND OWNS A 301 STAKE EXXON HAS A 377 STAKE AND BRITISH PETROLEUM HAS A 322 STAKE EXXON SAID THE PARTNERS HAVE SPENT ABOUT 300 MILLION TO EXPLORE AND DEVELOP THE FIELD 9310150035 931015 INTERNATIONAL BRIEF ITOYOKADO CO JAPANESE COMPANY'S PROFIT SLID 11 IN FISCAL 1ST HALF ITOYOKADO CO A LEADING JAPANESE SUPERMARKET OPERATOR SAID CONSOLIDATED PRETAX PROFIT FOR THE FIRST HALF ENDED AUG 31 SLIPPED 11 FROM A YEAR EARLIER PRETAX PROFIT WAS 9621 BILLION YEN COMPARED WITH 9728 BILLION YEN SALES FELL 57 TO 1436 TRILLION YEN FROM 1523 TRILLION YEN ITOYOKADO SAID ITS OPERATING ENVIRONMENT IN THE HALF WAS SEVERE WITH JAPAN'S CORPORATE CAPITAL OUTLAYS AND PERSONAL CONSUMPTION REMAINING SLUGGISH THE COMPANY SAID IT HASN'T SEEN SIGNS OF AN ECONOMIC RECOVERY IT SAID THE COOLEST SUMMER AND THE LONGEST RAINY SEASON IN 39 YEARS BODE POORLY FOR SALES THE COMPANY LOWERED ITS FORECAST FOR CONSOLIDATED EARNINGS FOR THE YEAR ENDED FEB 28 IT NOW EXPECTS PRETAX PROFIT OF 195 BILLION YEN DOWN 49 FROM ITS FORECAST OF 205 BILLION YEN FOR THE PREVIOUS YEAR THE COMPANY HAD PRETAX PROFIT OF 18112 BILLION YEN 9310150034 931015 SEEKING PARADISE OLD BELIEVERS' PARADOXES INSTEAD TVS PHONES AND CHANGE CREEP INTO SECT'S REMOTE VILLAGE COLLEGE AS A RADICAL NOTION BY BILL RICHARDS STAFF REPORTER OF THE WALL STREET JOURNAL NIKOLAEVSK ALASKA AMONG THE WORLD'S WANDERERS FEW HAVE TRAVELED FARTHER THAN NIKOLAEVSK'S OLD BELIEVERS FROM SIBERIA TO ALASKA BY WAY OF CHINA BRAZIL AND OREGON THEY HAVE CRISSCROSSED THE GLOBE TRYING TO OUTRUN CHANGE NOW AT THE END OF AN UNPAVED POTHOLED ROAD HERE THIS LAST NOMADIC SECT OF RUSSIAN ORTHODOX DISSIDENTS WATCHES CHANGE CREEPING UP AGAIN TELEVISION COMPUTERS TAPE PLAYERS TELEPHONES THE VERY AGENTS OF CHANGE THEY FLED IN THEIR LAST EXODUS FROM OREGON 25 YEARS AGO HAVE FOUND THEM EVEN IN THIS SPECK OF ALASKAN WILDERNESS AND THEREIN LIES A VERY MODERN PROBLEM WHERE DO YOU GO TO ESCAPE THESE DAYS WHEN THERE IS NO PLACE LEFT TO HIDE WE'VE ALWAYS RUN AWAY FROM OUTSIDE INFLUENCES SAYS PAUL FEFELOV A COMMERCIAL FISHERMAN AND DEACON OF ST NIKOLAS THE OLD BELIEVERS' ONIONDOMED CHURCH HERE BUT WHERE DO WE GO NOW ANTARCTICA YOU CAN PROBABLY GET TELEVISION IN ANTARCTICA WE JUST CAN'T RUN ANYMORE AND SO IT IS HERE ON ALASKA'S RUGGED KENAI PENINSULA THAT MR FEFELOV AND SOME 350 OF HIS FUNDAMENTALIST OLD BELIEVER BRETHREN ARE MAKING THEIR STAND TRYING TO COME TO GRIPS WITH PROGRESS THEY ARE THE LAST OF LITERALLY MILLIONS OF OLD BELIEVERS WHO HAVE SETTLED ACROSS THE GLOBE FROM TURKEY TO AUSTRALIA SINCE THEIR ANCIENT RUSSIAN DIASPORA FOR NIKOLAEVSK'S PERIPATETIC BAND HOWEVER ACCEPTING CHANGE HAS BEEN HARD VILLAGE ELDERS SPEAK SORROWFULLY OF THOSE THEY CALL THE LOST MOSTLY YOUNGER SECT MEMBERS WHO HAVE SUCCUMBED TO THE OUTSIDE WORLD'S TEMPTATIONS AND LEFT SPLINTER GROUPS HAVE RETREATED STILL DEEPER INTO THE WOODS SHUNNING MODERN CONVENIENCES AND SPEAKING ONLY RUSSIAN SOME OLD BELIEVERS HAVE EVEN VENTURED BACK TO RUSSIA TO SAMPLE LIFE IN THE POSTCOMMUNIST CLIMATE THE VERDICT IT WOULD BE GOING BACKWARDS SAYS THE 39YEAROLD MR FEFELOV WHO WAS BORN IN CHINA DURING AN OLD BELIEVER MIGRATION THERE WE ARE TOO COMFORTABLE HERE FOR SOME HOWEVER ACCOMMODATION HAS MADE THE WORLD MORE CONFUSING THAN EVER WHEN TELEVISION REPORTED THE ERUPTION OF OPERATION DESERT STORM SOME OLD BELIEVER CHILDREN SHOWED UP AT SCHOOL IN TEARS THE TV REPORTS PLAYED TO THE SECT'S BELIEF THAT ARMAGEDDON WILL ARRIVE WITH THE YEAR 2000 FOLLOWING A PERIOD OF WAR AND UPHEAVAL THE OLD PEOPLE WERE SAYING IT WAS THE END OF THE WORLD AND THE KIDS WERE SCARED SAYS AKCINIA RIVERA A SOPHOMORE AT THE NIKOLAEVSK SCHOOL IRONICALLY TELEVISION PRESENT IN ABOUT HALF OF THE VILLAGE'S HOMES ALSO HELPED EASE THE COMMUNITY'S CONCERNS THOUGH SOME ARE STILL SUSPICIOUS OF THE WAR REPORTS FOR ALL WE KNOW SAYS MR FEFELOV NOTHING REALLY HAPPENED OVER THERE AT ALL AND CNN WAS JUST A SHOW RICHARD MORRIS A CULTURAL ANTHROPOLOGIST WHO HAS STUDIED THE SECT CALLS THE OLD BELIEVERS ORTHODOX ORPHANS BY ISOLATING THEMSELVES FROM THE OUTSIDE WORLD HE SAYS THEY ARE TRYING TO PRESERVE A 17THCENTURY RELIGIOUS ETHIC THAT WAS ONCE QUITE INTEGRATED WITH THEIR WAY OF LIFE THE PROBLEM DR MORRIS ADDS IS THAT THIS ISN'T THE 17TH CENTURY ANYMORE THE ANTHROPOLOGIST RECALLS A FRIEND LIVING IN THE OLD BELIEVERS' ENCLAVE NEAR WOODBURN ORE WHO SMASHED FIVE TV SETS IN FRONT OF HIS FAMILY TO DEMONSTRATE HIS DISDAIN FOR THE MEDIUM THEN AN INJURY FORCED HIM TO BED FOR A COUPLE OF MONTHS THE FIRST THING HE DID RECALLS DR MORRIS BUY HIMSELF A TELEVISION THE OLD BELIEVERS HAVE BEEN WRESTLING WITH CHANGE SINCE 1666 WHEN PATRIARCH NIKON OUSTED THE GROUP FROM THE RUSSIAN ORTHODOX CHURCH FOR REFUSING TO ADOPT CHANGES IN CHURCH RITUAL THOUGH THE CHANGES SEEM SMALL NOW MAKING THE SIGN OF THE CROSS WITH THREE FINGERS INSTEAD OF TWO FOR EXAMPLE MILLIONS OF OLD BELIEVERS DIED FOR THEIR STUBBORNNESS OTHERS FLED TO SIBERIA DURING THE STALINIST ERA THE OLD BELIEVERS BECAME TARGETS AGAIN MANY LEFT RUSSIA ON AN ODYSSEY THAT TOOK THEM FIRST TO CHINA THEN SOUTH AMERICA AND FINALLY IN THE 1960S TO OREGON BUT WHEN THE TUG OF AMERICAN URBANIZATION BEGAN LURING AWAY THE SECT'S YOUTHS HUNDREDS OF THE GROUP'S MOST CONSERVATIVE MEMBERS PULLED UP STAKES AGAIN AND MOVED TO ALASKA THEY WANTED TO GET AWAY FROM THE AMERICAN INFLUENCES AND ALASKA WAS LIKE SIBERIA SAYS CYRIL GALITZINE OF THE TOLSTOY FOUNDATION A NEW YORKBASED GROUP THAT HELPED THEM RESETTLE IT SEEMED SO FAR AWAY TO A VISITOR NIKOLAEVSK STILL SEEMS OFF THE BEATEN PATH A TINY SCRAP OF RUSSIAN HISTORY BURIED DEEP IN BIRCH AND SPRUCE FORESTS ABOUT 200 MILES SOUTH OF ANCHORAGE THERE ARE NO SIGNS ALONG THE 10MILELONG ROAD INTO THE VILLAGE WHICH ISN'T SHOWN ON MOST MAPS NIKOLAEVSK'S ONLY STORE IS FILLED WITH BOLTS OF BRIGHTLY PATTERNED CLOTH AND EMBROIDERY USED TO MAKE THE LONG SKIRTS AND HEAD COVERS WORN BY OLD BELIEVER WOMEN AND THE HIGHNECKED COSSACKSTYLE SHIRTS WORN BY THE MEN AT THE VILLAGE PUBLIC SCHOOL WHERE MOST OF THE 157 PUPILS ARE OLD BELIEVERS PRINCIPAL CARLTON KUHNS'S BULLETIN BOARD HOLDS A LIST OF NEARLY TWO DOZEN OLD BELIEVER HOLY DAYS BY STATE LAW THE SCHOOL STAYS OPEN ON SUCH DAYS BUT NO ONE FROM THE SECT SHOWS UP MR KUHNS SAYS MS RIVERA THE OLD BELIEVER SOPHOMORE SAYS NIKOLAEVSK'S STUDENTS HAVE TROUBLE SOMETIMES RECONCILING LIFE HERE WITH THE REST OF THE WORLD AT TIMES SHE SAYS IT SEEMS LIKE YOU'RE TRYING TO BE TWO PEOPLE AT ONCE TAKE GRADUATION IN THE PAST TEENAGERS LIKE MS RIVERA USUALLY DROPPED OUT OF HIGH SCHOOL GETTING MARRIED OR GOING TO WORK NIKOLAEVSK'S SCHOOL YEARBOOK FOR 1979 SIM PLY STOPS AT THE NINTH GRADE BECAUSE NO ONE WAS LEFT MS RIVERA HOWEVER SAYS SHE WANTS TO GO TO COLLEGE AN UNHEARDOF STEP UNTIL A DECADE AGO NOW SCHOOL OFFICIALS PROUDLY SHOW VISITORS A LIST OF OLD BELIEVER GRADUATES MALE AND FEMALE WHO ARE HONOR STUDENTS AT LOWER 48 COLLEGES MOST RETURN TO THE VILLAGE OFFICIALS SAY BUT COLLEGE CAN BE WRENCHING FOR OLD BELIEVER FAMILIES MR FEFELOV'S DAUGHTER VALENTINA IS A SOPHOMORE AT THE UNIVER SITY OF WYOMING MR FEFELOV A NINTHGRADE DROPOUT WORRIES THAT COLLEGE NOTIONS AND LEARNING WILL INEVITABLY LEAD TO CONFLICT COLLEGE FORCES PARENTS INTO A CORNER BECAUSE A LOT OF THEM ARE ILLITERATE HE SAYS THE KIDS LOSE FAITH IN THEIR PARENTS AND THE PARENTS GET SCARED OF THEIR CHILDREN IT UNDERMINES EVERYTHING 9310150033 931015 APPAREL FIRMS EXPECTED TO POST MIXED RESULTS THIRDPERIOD NET TO REFLECT SLOW DEMAND FOR BASICS RECENT SHOPPING SURGE BY TERI AGINS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK WITH RETAIL DEMAND STAGNANT FOR BASIC JEANS AND TSHIRTS BUT BRISKER FOR MENSWEAR AND SOME WOMEN'S FASHIONS WALL STREET ANALYSTS EXPECT MIXED THIRDQUARTER EARNINGS AT PUBLICLY TRADED APPAREL COMPANIES IN AN EFFORT TO STIMULATE ORDERS THIS FALL MAKERS OF BASIC APPAREL HAVE BEEN CUTTING WHOLESALE PRICES THE NET EFFECT OF WHICH WILL BE FLATTOLOWER THIRDQUARTER EARNINGS FROM A YEAR AGO BUT COOLER SEPTEMBER WEATHER DREW SHOPPERS INTO MALLS IN SEARCH OF GOOD VALUE IN POPULAR FASHION BRANDS GIVING A LIFT TO THIRDQUARTER EARNINGS AT SUCH COMPANIES AS PHILLIPSVAN HEUSEN CORP WARNACO GROUP INC AND JONES APPAREL GROUP INC THERE'S BEEN A REAL JOCKEYING FOR POSITION AMONG APPAREL COMPANIES THAT ARE EITHER GAINING OR LOSING MARKET SHARE SAYS DEBORAH BRONSTON AN ANALYST AT PRUDENTIAL SECURITIES INC ANALYSTS NOTED THAT MANY COMPANIES TOOK AN ADDITIONAL HIT IN THE THIRD QUARTER AS CHANGES IN THE CORPORATE TAX LAW TOOK EFFECT THE NEW TAXES WERE RETROACTIVE TO THE FIRST AND SECOND QUARTERS OF 1993 BUT WERE CHARGED TO THE THIRD QUARTER MS BRONSTON ESTIMATES THAT HIGHER TAXES SHAVED FIVE TO SIX CENTS OFF THIRDQUARTER NET INCOME AT FRUIT OF THE LOOM INC VF CORP AND RUSSELL CORP ALL OF WHICH ARE EXPECTED TO REPORT LOWER THIRDQUARTER EARNINGS WITH THE RETAIL PIPELINE GLUTTED WITH JEANS AND SWEATS STORES ARE REORDERING LESS MERCHANDISE THAN A YEAR AGO AT VF ANALYSTS ESTIMATE THIRDQUARTER NET WILL FALL TO ABOUT 111 A SHARE FROM 125 A SHARE AT FRUIT OF THE LOOM ANALYSTS EXPECT NET INCOME TO BE FLAT OR ABOUT 59 CENTS A SHARE COMPARED WITH 61 CENTS HIGHER ADVERTISING COSTS DEPRESSED EARNINGS AT RUSSELL WHICH ANALYSTS ESTIMATE WILL REPORT NET INCOME OF 57 CENTS TO 60 CENTS A SHARE COMPARED WITH 62 CENTS A SHARE BUT A SURGE IN DEMAND FOR WELLKNOWN FASHION LABELS IS EXPECTED TO YIELD HIGHER EARNINGS FOR SOME APPAREL COMPANIES SHOPPERS ARE LOOKING FOR VALUE IN FASHION AND THAT'S HELPED THE MODERATETOBETTERPRICED BRANDS OBSERVES TODD SLATER AN APPAREL ANALYST AT UBS SECURITIES CONTINUING TO GAIN MARKET SHARE IN WOMEN'S CAREER APPAREL JONES APPAREL SHOULD REPORT THIRDQUARTER NET INCOME OF ABOUT 74 CENTS A SHARE UP FROM 67 CENTS A SHARE A YEAR EARLIER ACCORDING TO ANALYSTS CYGNE DESIGNS INC A SUPPLIER TO LIMITED INC AND ANNTAYLOR STORES CORP IS EXPECTED TO REPORT NET INCOME OF 25 CENTS A SHARE COMPARED WITH 16 CENTS BUT AT LIZ CLAIBORNE INC WHICH HAS BEEN SADDLED WITH EXCESS INVENTORIES ANALYSTS' EARNINGS ESTIMATES RANGE FROM 44 CENTS TO 50 CENTS A SHARE DOWN FROM 77 CENTS SEVERAL MENSWEAR MAKERS ARE EXPECTED TO POST HIGHER EARNINGS HARTMARX CORP ALREADY REPORTED NET OF SIX CENTS A SHARE REVERSING A NET LOSS OF 84 CENTS A SHARE A YEAR AGO ED JOHNSON AN ANALYST AT JOHNSONREDBOOK SERVICES ESTIMATES PHILLIPSVAN HEUSEN WILL REPORT NET OF 90 CENTS A SHARE UP FROM 81 CENTS THE COMPANY HAS BENEFITED FROM BRISK SALES AT ITS FACTORYOUTLET STORES MENSWEAR BRANDS A MIX OF STRONG MENSWEAR BRANDS AND HIGHMARGIN INTIMATE APPAREL SHOULD LIFT WARNACO GROUP'S THIRDQUARTER NET TO 88 CENTS A SHARE FROM 76 CENTS ACCORDING TO MR SLATER OF UBS AND SURGING DEMAND FOR ALLCOTTON WRINKLEFREE PANTS WILL RESULT IN HIGHER THIRDQUARTER EARNINGS AT FARAH INC ANALYSTS SAID EVEN THOUGH RETAILERS HAVE KEPT INVENTORIES LEAN IN EXPECTATION OF MODEST CHRISTMAS SALES CERTAIN APPAREL MAKERS STILL HAVE A CHANCE TO BOOK ADDITIONAL HOLIDAY ORDERS AND STRENGTHEN THEIR FOURTHQUARTER RESULTS A NUMBER OF BIGGER APPAREL COMPANIES THAT HAVE SHORTER PRODUCTION LEAD TIMES WILL BE ABLE TO CAPITALIZE IF EARLY CHRISTMAS BUSINESS IS STRONG SAYS FAYE LANDES OF PAINEWEBBER STILL MANY ANALYSTS ARE CONCERNED THE DIFFICULT ECONOMY WILL DAMP FOURTHQUARTER RESULTS FOR APPAREL MAKERS AND RETAILERS ALIKE THERE ISN'T ENOUGH BUOYANCY IN THE ECONOMY TO GET ROBUST HOLIDAY SALES WITHOUT A LOT OF PROMOTIONS MS BRONSTON SAYS 9310150032 931015 INTERNATIONAL BRIEF SANDOZ AG SWISS DRUG MAKER EXPECTS 1993 NET TO RISE OVER 10 SANDOZ AG A MAJOR SWISS CHEMICAL AND PHARMACEUTICAL GROUP SAID THURSDAY THAT IT EXPECTS NET PROFIT FOR 1993 TO RISE MORE THAN 10 THE COMPANY IN A BRIEF STATEMENT ALSO SAID GROUP SALES IN THE FIRST NINE MONTHS ROSE 4 TO 1151 BILLION SWISS FRANCS 82 BILLION FROM 1106 BILLION FRANCS A YEAR EARLIER SANDOZ ATTRIBUTED THE BOOST IN SALES TO ACCELERATING GROWTH IN PHARMACEUTICAL SALES WHICH JUMPED 6 TO 548 BILLION FRANCS FROM 517 BILLION FRANCS IN SPITE OF CONTINUING RECESSION IN EUROPE AND EFFORTS IN SEVERAL COUNTRIES TO CONTAIN HEALTH CARE COSTS WE ARE CONFIDENT TO FURTHER INCREASE SALES IN THE FOURTH QUARTER THE COMPANY SAID IT SAID THE PATTERN OF THE GROUP'S SALES GROWTH COMBINED WITH STRICT COST CONTROL ALLOWS US TO EXPECT AN INCREASE IN NET INCOME IN 1993 OF MORE THAN 10 9310150031 931015 MARKETING BRIEF NOTED ELECTRONIC READING AMERICA ONLINE INC IS ADDING THE ATLANTIC MONTHLY AND WINDOWS MAGAZINE TO ITS COMPUTER NETWORK IT ALREADY OFFERS TIME MAGAZINE ALONG WITH ABOUT 25 NEWSPAPERS AND MAGAZINES AND TRANSCRIPTS OF CNN BROADCASTS PUBLISHING ANN PATTY 42 WHO QUIT IN AUGUST AS PUBLISHER OF SIMON & SCHUSTER'S POSEIDON PRESS WAS NAMED EDITORATLARGE OF CROWN PUBLISHING GROUP EFFECTIVE NOV 1 SHE WILL ACQUIRE AND EDIT BOTH COMMERCIAL AND LITERARY BOOKS SAID CROWN WHICH IS A DIVISION OF ADVANCE PUBLICATIONS INC'S RANDOM HOUSE INC 9310150030 931015 WASHINGTON WIRE A SPECIAL WEEKLY REPORT FROM THE WALL STREET JOURNAL'S CAPITAL BUREAU BY RICH JAROSLOVSKY FOREIGNPOLICY HOT SPOTS WILL CONTINUE TO DISTRACT THE ADMINISTRATION OFFICIALS WORRY ABOUT THE PROSPECT OF A STANDOFF IN HAITI THAT COULD LAST FOR MONTHS FOES OF OUSTED PRESIDENT ARISTIDE THREATEN TO CALL ANOTHER GENERAL STRIKE AND DEMAND THE DEPARTURE OF INTERNATIONAL MONITORS SOME IN THE CLINTON ADMINISTRATION COMPLAIN THE PENTAGON LEAKED AN OLD STORY QUESTIONING ARISTIDE'S MENTAL HEALTH IN ORDER TO UNDERCUT THE PROARISTIDE POLICY IN SOMALIA THE BIGGEST OBSTACLE TO A SOLUTION MAY NOT BE AIDID BUT THE UN THEY ARE TRYING TO FIND AN EXCUSE FOR THEIR FAILURE BY NOT ALLOWING ANY OTHER PROCESS TO HAPPEN CHARGES ERITREAN PRESIDENT ISAIAS WHO IS HELPING OVERSEE NEW PEACE TALKS THAT WILL INCLUDE AIDID BUT SEEING AIDID EMERGE AS PRESIDENT OF SOMALIA WHICH COULD HAPPEN WOULD STILL BE A BITTER PILL FOR THE US MEANWHILE CHRISTOPHER PRIVATELY ASKS BRITAIN'S FOREIGN SECRETARY WHETHER THE US COULD AVOID SENDING PEACEKEEPERS TO BOSNIA BUT THE TWO AGREE THE US HAS NO CHOICE LAWMAKERS SEEK TO MODIFY BELL ATLANTICTCI AND SIMILAR FUTURE DEALS SENATE ANTITRUST CHAIRMAN METZENBAUM BELIEVES HE CAN STOP OR SERIOUSLY IMPEDE THE MERGER THOUGH OTHERS SUGGEST A JUST SAY NO APPROACH WON'T SUCCEED ONE POSSIBILITY REQUIRING TCI TO SELL RATHER THAN SPIN OFF ITS CABLE OPERATIONS IN BELL ATLANTIC'S REGION MEANWHILE HOUSE TELECOMMUNICATIONS CHAIRMAN MARKEY WANTS TO PUSH PHONE COMPANIES TO BUILD THEIR OWN CABLE SYSTEMS RATHER THAN BUYING EXISTING ONES METZENBAUM CRITICIZES AS NOT HELPFUL GORE'S POSITIVE IF CAUTIOUS INITIAL REACTION TO THE TCI DEAL BELL ATLANTIC HAD SHREWDLY GIVEN DEPUTY WHITE HOUSE CHIEF OF STAFF ROY NEEL A FORMER GORE AIDE A GENERAL HEADSUP THE NIGHT BEFORE THE ANNOUNCEMENT THEN THE NEXT DAY PITCHED THE DEAL TO WHITE HOUSE OFFICIALS POLITICAL REFORM MAY MOVE FORWARD BUT IN A WATEREDDOWN FORM HOUSE DEMOCRATS SCHEDULE REFORM WEEK TO CONSIDER CAMPAIGNFINANCE AND LOBBYING REFORMS LATE THIS MONTH BUT REFORM ADVOCATES FEAR DEMOCRATS WILL USE A TOUGH LOBBY BILL EXPECTED TO PLUG DISCLOSURE LOOPHOLES AND BAN GIFTS TO LAWMAKERS WORTH MORE THAN 20 TO PROVIDE POLITICAL COVER FOR A TEPID CAMPAIGNFINANCE MEASURE WITH REPUBLICANS AND CONSERVATIVE DEMOCRATS FIGHTING PARTIAL PUBLIC FINANCING DEMOCRATIC REP SYNAR PREDICTS THE HOUSE WILL ABANDON SPENDING LIMITS AND ADOPT HIS BIPARTISAN PLAN TO MERELY REDUCE MAXIMUM PAC CONTRIBUTIONS FROM 5000 TO 1000 AND MAXIMUM INDIVIDUAL CONTRIBUTIONS FROM 1000 TO 500 CLINTON WILL SIGN ANYTHING AND CALL IT REAL REFORM SAYS ELLEN MILLER OF THE CENTER FOR RESPONSIVE POLITICS PEROT URGES HIS UNITED WE STAND AMERICA CHAIRMEN IN STATES THAT ARE HOME TO SOLDIERS KILLED IN SOMALIA TO HAVE MEMBERS ATTEND FUNERALS AND SUPPORT THE FAMILIES OF THE SOLDIERS FRIENDS OF ONE FAMILY SAY PEROT HIMSELF CALLED TO OFFER FINANCIAL HELP THE BRADY BILL ON GUN CONTROL WILL BE ON CLINTON'S DESK BY THE END OF VEMBER HOUSE CRIME SUBCOMMITTEE CHAIRMAN SCHUMER PROMISES HOUSE LEADERS WANT TO KEEP BRADY IN THE PENDING CRIME BILL TO HOLD LIBERAL SUPPORT FOR THE BROADER MEASURE BUT SCHUMER SAYS HE WILL SEPARATE OUT BRADY AS THE SENATE ALREADY HAS IF THE CRIME BILL GETS PINNED DOWN IN LEFTRIGHT CROSSFIRE CLINTON MUST CHOOSE AMONG HIS SPENDING PRIORITIES FOR NEXT YEAR THE DEFICITREDUCTION LAW LEAVES LITTLE ROOM FOR HIS INVESTMENT AGENDA AIDES RIVLIN AND SPERLING COORDINATE AN INTERNAL PRIORITYSETTING EFFORT CLINTON IS LIKELY TO INSIST ON FUNDING WELFARE REFORM AND REICH'S OVERHAUL OF TRAINING PROGRAMS BENTSEN CHOOSES HIS WORDS ON HEALTH CAREFULLY WHILE ENDORSING CLINTON'S CALL FOR UNIVERSAL COVERAGE HE TELLS A DALLAS AUDIENCE THERE ARE SOME THINGS THAT YOU WOULD DO DIFFERENTLY AND MAYBE I WOULD DO DIFFERENTLY HE ALSO STRESSES ADMINISTRATION WILLINGNESS TO AMEND ITS PROPOSAL QUESTIONS PURSUE CLINTON AIDES ABOUT HEALTHCARE FINANCING NUMBERS WHITE HOUSE HEALTH GURU MAGAZINER ANTAGONIZES A SKEPTICAL SENATE FINANCE CHAIRMAN MOYNIHAN BY FAILING TO DELIVER ON A PLEDGE TO PROVIDE MORE DETAILS ON ASSUMPTIONS UNDERLYING THE PLAN IN RESPONSE TO MOYNIHAN HE ADMITS HEALTHCARE COSTS MEASURED AGAINST THE SIZE OF THE ECONOMY ARE LIKELY TO RISE AFTER 2000 ADDING TO THE CONFUSION OVER THE NUMBERS HEALTH CARE FINANCING ADMINISTRATION CHIEF ACTUARY GUY KING LAST WEEK PUT THE FIVEYEAR COST OF THE CLINTON HEALTH PLAN 250 BILLION HIGHER THAN HAD MAGAZINER'S SHOP BUT KING ATTRIBUTES THE HUGE GAP TO A LACK OF INFORMATION ABOUT SPECIFIC POLICIES NOW THAT THEY HAVE BEEN SPELLED OUT HE SAYS THERE AREN'T ANY DISCREPANCIES AS FAR AS I KNOW PRINCETON'S UWE REINHARDT SCHEDULES FOR LATER THIS MONTH A HEALTHCARE CONFERENCE OF PROMINENT ECONOMISTS MANY OF WHOM ARE SURE TO ATTACK THE CLINTON PLAN 9310150029 931015 INTERNATIONAL BRIEF HITACHI LTD COMPANY'S PLANT WILL MAKE NEXTGENERATION DRAMS HITACHI LTD WILL INVEST 60 BILLION YEN 5668 MILLION OVER THE NEXT TWO AND A HALF YEARS IN THE CONSTRUCTION AND OUTFITTING OF A FACILITY TO PRODUCE NEXTGENERATION DYNAMIC RANDOM ACCESS MEMORY DRAM DEVICES A SPOKESWOMAN FOR THE HIGHTECHNOLOGY CONCERN SAID HITACHI SHE SAID ALREADY HAS CONSTRUCTED THE BUILDING AT A COMPANY PLANT IN JAPAN THAT WILL HOUSE THE NEW LINE CAPABLE OF TURNING OUT BOTH 16MEGABIT DRAMS THE DEMAND FOR WHICH IS GROWING FOR USE IN HIGHEND PERSONAL COMPUTERS AND WORKSTATIONS AND 64MEGABIT DRAMS WHICH ARE A GENERATION AWAY FROM MASS PRODUCTION SHE SAID THAT SOME 40 BILLION YEN OF THE INVESTMENT IS TO BE COMPLETED BY THE END OF NEXT SEPTEMBER WITH THE NEW PRODUCTION LINES THEN TURNING OUT A MONTHLY VOLUME OF ONE MILLION 16MEGABIT DRAM CHIPS THE ADDITIONAL 20 BILLION YEN IN EQUIPMENT OUTLAYS THE SPOKESWOMAN SAID WILL BRING THE OUTPUT LEVEL OF 16MEGABIT DRAMS TO THREE MILLION UNITS A MONTH BY APRIL 1996 9310150028 931015 MARKETING & MEDIA ADVERTISING BELL ATLANTIC DEAL FINDS AGENCIES NERVOUS ABOUT THEIR FUTURE ROLE BY KEVIN GOLDMAN THE ADVERTISING INDUSTRY ALREADY REELING FROM POWERFUL POACHERS AND A DIZZYING NUMBER OF AGENCY REVIEWS FACES A POTENT NEW CHALLENGE STEMMING FROM BELL ATLANTIC'S PROPOSED ACQUISITION OF CABLE GIANT TELECOMMUNICATIONS WITH PROGRAMMINGONDEMAND LOOMING SOONER THAN ORIGINALLY ANTICIPATED MADISON AVENUE MUST NOW ANSWER THE WAKEUP CALL AND DEFINE A NEW ROLE FOR ITSELF IN THE 500CHANNEL WORLD THAT WILL INCLUDE EVERYTHING FROM TRADITIONAL NETWORK FARE TO INTERACTIVE SHOWS ADVERTISING HAS ALWAYS BEEN AND CONTINUES TO BE AN INTRUSIVE MEDIUM BUT WHEN ENTERTAINMENT PROGRAMS MOVIES SPORTING EVENTS AND NEWS ARE CHOSEN SELECTIVELY BY THE CONSUMER AND DELIVERED THROUGH HOME TELEPHONE LINES INDUSTRY ANALYSTS AND EXECUTIVES SAY ADVERTISING WILL BE MORE OF A MERE OPTION TO WATCH THAN IT IS TODAY WHEN COMMERCIALS CAN BE ZAPPED BY A REMOTECONTROL CLICKER THE CONSUMER IS GOING TO HAVE GREAT UNHEARDOF CONTROL AND POWER OVER PROGRAMMING AND THEREFORE OVER THE ADVERTISING SAYS BETSY FRANK SENIOR VICE PRESIDENT OF NEW MEDIA AT SAATCHI & SAATCHI ADVERTISING THEREFORE ADS HAD BETTER BE ENTERTAINING AND PROVIDE CONCRETE INFORMATION ABOUT A PRODUCT THESE ANALYSTS AND EXECUTIVES SAY THAT'S QUITE A CHALLENGE FOR AN INDUSTRY THAT IS MORE COMFORTABLE FOLLOWING A TREND THAN STARTING ONE THE ALARM IS SOUNDING AS A FORMER MARKETING EXECUTIVE FROM COCACOLA PETER S SEALEY IS SCHEDULED TO DELIVER AN ADDRESS SUNDAY HARSHLY CRITICIZING NOT ONLY THE CONTENT OF ADVERTISING BUT THE TRADITIONAL ADVERTISINGAGENCY MANAGEMENT STRUCTURE AS WELL MR SEALEY IS DELIVERING A SPEECH TITLED THE SEARCH FOR CREATIVITY AT THE 84TH ANNUAL CONVENTION OF THE ASSOCIATION OF NATIONAL ADVERTISERS AT THE RITZCARLTON IN NAPLES FLA MR SEALEY IS LIKELY TO GET A MIXED RECEPTION TO ADVERTISERS HE IS SOMETHING OF A HERO THE FIRST EXECUTIVE WITH THE COURAGE TO GO OUTSIDE THE HALLOWED AGENCY STRUCTURE LAST YEAR HE HIRED HOLLYWOOD SUPERAGENT MICHAEL OVITZ AND HIS CREATIVE ARTISTS AGENCY TO PRODUCE A SLEW OF NEW SPOTS FOR COKE THAT LEFT ITS LONGTIME AGENCY INTERPUBLIC GROUP'S MCCANNERICKSON WITH THE LESS GLAMOROUS ASSIGNMENT OF BUYING COMMERCIAL TIME AMONG OTHER THINGS TO AD AGENCIES MR SEALEY IS HARDLY A WELCOME FACE HIS COMPLAINT IS SIMPLY THAT THE INDUSTRY HAS TURNED OUT DULL ROUTINE OVERTESTED COMMERCIALS AND PRINT EXECUTIONS IN PREPARED REMARKS MR SEALEY CLICKS OFF SIX MEMORABLE AD CAMPAIGNS FROM THE 1960S INCLUDING NO MATTER WHAT SHAPE YOUR STOMACH'S IN FOR ALKASELTZER THINGS GO BETTER WITH COKE AND THINK YOUNG YOU'RE IN THE PEPSI GENERATION NOW QUICKLY GIVE ME YOUR COMPARABLE SIX CAMPAIGNS FOR THE 1980S HE SAYS ANY COME TO MIND IT'S A LITTLE DIFFICULT ISN'T IT MR SEALEY WHO RESIGNED FROM COCACOLA IN JULY AFTER NEARLY THREE YEARS SAYS IT IS TIME FOR THE REBIRTH OF ADVERTISING BUT IT CAN'T BE DONE WITHIN THE EXISTING ORGANIZATIONAL STRUCTURE AND CURRENT BUSINESS PRACTICES OF THE GLOBAL PREDOMINANTLY PUBLICLY HELD MEGAAGENCIES THAT DOMINATE THE ADVERTISING LANDSCAPE TODAY THE DOMINANT ORGANIZATION STRUCTURE OF THE TOP TIER OF ADVERTISING IS STRUCTURED FOR A BYGONE ERA MR SEALEY CHARACTERIZES THE CURRENT LARGE AD AGENCIES AS OVERGROWN WHEEZING SHOPS NOT UNLIKE GENERAL MOTORS OF THE PAST A FACTORY PRODUCING A COSTLY INEFFICIENT GASGUZZLING SQUEAKY AND POLLUTING 1973 CHEVROLET IMPALA WHEN IT IS A 1994 LEXUS LS400 THAT THE BUYER WANTS IN A TELEPHONE INTERVIEW FROM HIS ATLANTA OFFICE MR SEALEY SAYS HE HOPES THE SPEECH WILL LEAD TO A SPIRITED DEBATE ABOUT THE EFFECTIVENESS OF ADVERTISING TODAY YOU HAVE TO ASK EVERY ONCE IN A WHILE DOES THE EMPEROR HAVE ANY CLOTHES AD AGENCIES CLEARLY ARE NERVOUS WITH THE CHANGES ON THE HORIZON THE TROUBLE IS AD AGENCIES AREN'T SURE WHAT TO DO THERE IS GOING TO BE A MAD SCRAMBLE IN THE ADVERTISING BUSINESS IN THE NEXT FEW MONTHS AS THE AGENCIES RUSH TO GET EDU CATED ABOUT THE NEW MEDIA SAYS DOUGLAS C AHLERS A GENERAL PARTNER OF MODEM MEDIA A WESTPORT CONN AD AGENCY SPECIALIZING IN INTERACTIVE ADVERTISING SOUNDING OMINOUS IF NOT SELFSERVING MR AHLERS SAYS THAT ADVERTISERS MAY FLOCK TO SPECIALTY AGENCIES AND NOT THE TRADITIONAL LARGE SHOPS TO TAKE ADVANTAGE OF THE NEW TECHNOLOGY PRINCIPALLY INTERACTIVITY FOR EXAMPLE PRODUCING A TRADITIONAL HALFMINUTE COMMERCIAL FOR SAY BUICK WILL NO LONGER BE GOOD ENOUGH INSTEAD THAT SPOT MOST LIKELY WILL BE BUTTRESSED BY A PROGRAM AKIN TO AN INFOMERCIAL IN WHICH VIEWERS CAN REQUEST ADDITIONAL INFORMATION ABOUT THE AUTOMOBILE THAT DATA MIGHT EVEN BE DELIVERED ON A PRINTER POSITIONED NEAR THE TELEVISION SET SAATCHI & SAATCHI'S MS FRANK SAYS THE POSSIBILITY EXISTS FOR AD AGENCIES TO PRODUCE SPECIALTY COMMERCIALS FOR SELECT AUDIENCES AS VIEWERSHIP BECOMES FURTHER SPLINTERED THE NEW PROCESS WILL MAKE THE PRACTICE OF HAVING SEPARATE ADS FOR CHILDREN FOR EXAMPLE LOOK PREHISTORIC WITH SOPHISTICATED DATA AVAILABLE ADVERTISERS COULD ACTUALLY DEMAND THEIR COMMERCIALS REACH TARGETED NEIGHBORHOODS THE NEW PROGRAMMING SAYS MS FRANK WILL HAVE TO BE PAID FOR AND THE CONSUMER WON'T BE WILLING TO SHOULDER ALL THE COSTS THEREFORE THERE IS THE CHANCE THAT ADVERTISERS WILL BE ABLE TO POP UP IN PLACES WHERE THEY ARE CURRENLY PRECLUDED SUCH AS PAYPERVIEW IF ADS ARE INCLUDED SAYS MS FRANK THEN IT MAY DRIVE THE COSTS DOWN FOR THE CONSUMER ADS ARE SHOWN IN MOVIE THEATERS YET ADMISSION COSTS CONTINUE TO RISE AD AGENCIES ARE GROPING THEIR WAY THROUGH THE NEW INTERACTIVE WORLD MS FRANK CONCEDES WE WON'T KNOW WHAT THE CONSUMER WANTS OR HOW THE CONSUMER WILL ACT UNTIL A TEST MARKET IS SET UP BUT ADS WILL CHANGE NO DOUBT ABOUT IT SAYS MR AHLERS OF MODEM MEDIA NO LONGER WILL YOU HAVE A SIMPLE NIKE AD IN THE NEAR FUTURE THAT SAME AD MUST ALLOW THE VIEWER TO IF HE WANTS TO ORDER A PAIR RIGHT THEN AND THERE AFTER WATCHING THE SPOT HE ADDS IT'S GOING TO GET STRANGE IN THE LIVING ROOM MR SEALEY AGREES THAT THE CHALLENGES FACING THE ADVERTISING COMMUNITY ARE TOUGH TO SAY THE LEAST BUT THE AD AGENCY OF THE 1990S MUST GO THROUGH A PAINFUL METAMORPHOSIS TO SURVIVE THE AGENCY NEEDS TO REACH OUT INTO THE INDEPENDENT CREATIVE COMMUNITY FOR CREATIVITY JUST LIKE THE FILM ENTERTAINMENT AND TELEVISION BUSINESSES DO SOME OF THE BEST TALENT WILL NOT BE ON THE FULLTIME PAYROLL THE AGENCY'S INTERNAL ORGANIZATION NEEDS TO BE FLATTENED WITH FEWER LEVELS TERMINATION AFTER A DISMAL SEASON THE NEW YORK METS FIRED ITS AD AGENCY OMNICOM GROUP'S TBWA ADVERTISING THE AGENCY SAID WE GAVE THEM THE SLOGAN HARDBALL IS BACK' AND OBVIOUSLY IT WASN'T SAID PRESIDENT DICK COSTELLO OFFICIALS OF THE BASEBALL TEAM COULDN'T BE REACHED FOR COMMENT JERRY DELLA FEMINA'S AGENCY JERRY INC IS SAID TO HAVE AN INSIDE TRACK ON THE ACCOUNT 9310150027 931015 BUSINESS BRIEF INACOM CORP THIRDQUARTER NET FELL 23 ON ADDED DISTRIBUTION COSTS INACOM CORP SAID DISAPPOINTING SEPTEMBER SALES AT COMPANYOWNED OUTLETS AND THE ADDED COSTS OF REALIGNING ITS DISTRIBUTION PROCESS PUSHED EARNINGS DOWN 23 IN THE THIRD QUARTER THE OMAHA NEB COMPUTER SYSTEMS AND SERVICE CONCERN REPORTED NET INCOME OF 21 MILLION OR 20 CENTS A SHARE DOWN FROM 27 MILLION OR 32 CENTS A SHARE ANALYSTS' MEAN EARNINGS ESTIMATE WAS 43 CENTS A SHARE ACCORDING TO ZACK'S INVESTMENT RESEARCH INC REVENUE CLIMBED TO 3942 MILLION FROM 2396 MILLION DAVID C GUENTHNER EXECUTIVE VICE PRESIDENT AND CHIEF FINANCIAL OFFICER SAID INACOM INCURRED ABOUT 2 MILLION IN ADDED COSTS AS IT STREAMLINED DISTRIBUTION CHANNELS BY ADDING A DISTRIBUTION CENTER AND INCREASING DIRECT SHIPMENTS TO END CUSTOMERS IN OVERTHECOUNTER TRADING YESTERDAY INACOM SHARES WERE QUOTED AT 1750 DOWN 75 CENTS 9310150026 931015 BUSINESS BRIEF VOLKSWAGEN AG AUTO MAKER MAY CUT SHIFTS AT ALL OF ITS GERMAN PLANTS VOLKSWAGEN AG IS CONSIDERING PUTTING ALL OF ITS GERMAN PLANTS ON SHORT SHIFTS RATHER THAN JUST ITS MAIN PLANT AT WOLFSBURG A VW SPOKESMAN SAID ANOTHER SPOKESMAN EARLIER YESTERDAY HAD INDICATED THAT VW WAS CONSIDERING IDLING ITS WOLFSBURG PLANT FOR 47 DAYS THE VW SPOKESMAN STRESSED THAT NO FIRM DECISION HAS BEEN REACHED ON HOW LONG INDIVIDUAL PLANTS WILL BE IDLED OR WHEN THE TEMPORARY CLOSURES WILL BEGIN AT THE MOMENT VW IS CONSIDERING TEMPORARILY SHUTTING DOWN ITS MOSEL PLANT AT THE BEGINNING OF THE YEAR THE SPOKESMAN SAID VW WAS PLANNING SHORT SHIFTS AT ITS DOMESTIC PLANTS BECAUSE IT DOESN'T EXPECT A ROBUST REBOUND IN THE DEPRESSED EUROPEAN AUTO MARKET IN 1994 VW GERMANY'S LARGEST AUTO MAKER HAS BEEN STRUGGLING AGAINST THE STEEP DOWNTURN IN THE EUROPEAN CAR MARKET AND TRYING TO IMPROVE ITS POOR PROFIT MARGINS 9310150025 931015 WHAT'S NEWS BUSINESS AND FINANCE CHRYSLER'S PROFIT MORE THAN DOUBLED SURPRISING ANALYSTS AND MARKING THE CAR MAKER'S BEST THIRD QUARTER EVER CHRYSLER'S STOCK ROSE 325 OR 67 TO 5175 A 52WEEK HIGH THE RESULTS WHICH HELPED LIFT GM AND FORD STOCKS COULD MAKE A DIVIDEND INCREASE LIKELY BEFORE YEAR END OTHER BABY BELLS ARE SEARCHING FOR CABLE COMPANIES TO ALLY WITH IN THE WAKE OF BELL ATLANTIC'S DEAL WITH TCI SOME CABLE STOCKS HAVE BEEN DRIVEN UP MORE THAN 20 AS WALL STREET IS BETTING ON A RASH OF FRESH MERGERS QVC NETWORK APPEARS CLOSE TO OBTAINING AN INVESTMENT OF 500 MILLION OR MORE FROM COX ENTERPRISES FOR QVC'S TAKEOVER BID FOR PARAMOUNT KMART IS CONSIDERING THE SALE OF MINORITY STAKES IN ITS SPORTS AUTHOR ITY BORDERS OFFICEMAX AND BUILDERS SQUARE CHAINS AMID PRESSURE TO FOCUS ON ITS FALTERING DISCOUNT STORES THE RETAILER IS LIKELY TO SELL 25 STAKES IN ONE OR MORE OF THE CHAINS THROUGH IPOS PRODUCER PRICES EDGED UP 02 LAST MONTH INDICATING THAT INFLATION REMAINED LOW RETAIL SALES ROSE 01 SALES AT DEPARTMENT APPAREL AND FURNITURE STORES WERE PARTICULARLY STRONG SEPARATELY INITIAL CLAIMS FOR STATE UNEMPLOYMENT AID ROSE 8000 LAST WEEK STOCK AND BOND PRICES RALLIED ON THE POSITIVE INFLATION NEWS THE DOW JONES INDUSTRIALS CLIMBED 1844 POINTS TO 362163 IN THE SECONDHEAVIEST TRADING ON THE BIG BOARD THIS YEAR THE TREASURY'S 30YEAR BENCHMARK GAINED OVER 3/4 POINT ITS YIELD FELL TO 585 CITIBANK PLANS TO REENTER THE US TAXEXEMPT PENSION FUND AND NON PROFIT INSTITUTIONAL MARKET WITH ITS REORGANIZED ASSET MANAGEMENT ARM THE BANK WILL EMPHASIZE ITS GLOBAL CAPABILITIES IN EMERGING MARKETS CHEMICAL AND CHASE ARE MOVING TO GET APPROVAL TO UNDERWRITE AND SELL STOCKS REFLECTING BANKS' INTEREST IN TRADITIONAL INVESTMENT BANKING A GROUP OF DRUGSTORES SUED SEVEN MAJOR PHARMACEUTICAL FIRMS SAYING THEY VIOLATED ANTITRUST LAWS BY OFFERING DEEP DISCOUNTS TO MANAGEDCARE GROUPS BUT NOT TO PHARMACIES US SURGICAL POSTED ITS SECOND CONSECUTIVE QUARTERLY LOSS AND SAID IT WILL LAY OFF 8 OF ITS WORK FORCE SLASH ITS DIVIDEND 73 AND CUT EXECUTIVE PAY JAPAN OFFERED TO OPEN ITS RICE MARKET TO SMALL AMOUNTS OF IMPORTS PROVIDING WHAT COULD BE A SIGNIFICANT BOOST TO STALLED WORLD TRADE TALKS BUT A US AIDE CALLED THE OFFER INADEQUATE JP MORGAN'S PROFIT SURGED 46 IN THE THIRD QUARTER MAINLY FROM GAINS ON TRADING BONDS AND CURRENCIES MICROSOFT PLANS TO UNVEIL ON TUESDAY A LONGAWAITED OVERHAUL OF ITS OFFICE GROUP OF APPLICATION PROGRAMS APPLE REPORTED A 27 MILLION PROFIT FOR ITS FISCAL FOURTH QUARTER SLIGHTLY BETTER THAN SOME ANALYSTS EXPECTED WHIRLPOOL'S PROFIT CLIMBED 27 IN THE THIRD QUARTER REFLECTING STRONG RE SULTS IN ITS EUROPEAN OPERATION THE APPLIANCE MAKER SAID THE LATEST RESULTS MARKED ITS BEST THIRD QUARTER EVER PUBLIC COMPANIES IN ONTARIO MUST DISCLOSE INDIVIDUAL COMPENSATION FOR CHIEF EXECUTIVES AND OTHERS THE ONTARIO GOVERNMENT SAID CATCHING CANA DIAN CORPORATE LEADERS BY SURPRISE GENENTECH'S NET DOUBLED IN THE THIRD QUARTER BOOSTED BY A RESURGENCE IN SALES OF ITS HEART DRUG ACTIVASE THE RESULTS WERE HIGHER THAN ANALYSTS EX PECTED AND SENT GENENTECH'S STOCK UP 625 CENTS TO 4675 A 52WEEK HIGH BONDS LEHMAN BROTHERS TREASURY INDEX 573022 UP 3191 COMMODITIES OIL 1850 A BARREL OFF 14 CENTS DOW JONES FUTURES INDEX 12786 OFF 028 SPOT INDEX 11868 OFF 019 DOLLAR 10735 YEN UP 140 16125 MARKS UP 00110 9310150024 931015 BUSINESS BRIEF REYNOLDS METALS CO DEFICIT TOTALING 28 MILLION IS POSTED FOR THIRD QUARTER REYNOLDS METALS CO RICHMOND VA REPORTED A THIRDQUARTER LOSS OF 28 MILLION OR 47 CENTS A SHARE REFLECTING A WORLDWIDE GLUT OF ALUMINUM WHICH IS DEPRESSING PRICES AND PUSHING MOST ALUMINUM PRODUCERS INTO THE RED THE LOSS WHICH WAS IN LINE WITH ANALYSTS' EXPECTIONS INCLUDES A CHARGE OF 8 MILLION OR 13 CENTS A SHARE FOR PRODUCTION CUTBACKS A YEAR EARLIER REYNOLDS EARNED 127 MILLION OR 21 CENTS A SHARE MANAGEMENT AND WORKERS HAVE DONE ALL THEY CAN TO INCREASE EARNINGS BUT CONDITIONS IN THE MARKET KEEP PUSHING THEM DOWN SAID THOMAS M VAN LEEUWEN A FIRST BOSTON METALS ANALYST REVENUE FELL TO 134 BILLION FROM 148 BILLION A YEAR EARLIER SHIPMENTS WERE DOWN AS WELL DIPPING TO 386100 METRIC TONS COMPARED WITH 388300 METRIC TONS IN THE YEARAGO PERIOD A METRIC TON EQUALS 220462 POUNDS 9310150023 931015 INTERNATIONAL JAPAN'S NISSAN MAZDA ASK PARTS MAKERS TO CUT PRICES SPECIAL TO THE WALL STREET JOURNAL TOKYO NISSAN MOTOR CO AND MAZDA MOTOR CORP FACING NEEDS TO CUT COSTS HAVE ASKED PARTS MAKERS TO REDUCE PRICES IN THE SECOND HALF ENDING MARCH 31 SPOKESMEN AT THE TWO JAPANESE CAR MAKERS SAID THE SEVERE BUSINESS CONDITIONS STEMMING FROM WEAK SALES AND THE YEN'S RISE IN VALUE LED THE AUTO MAKERS TO CALL FOR COOPERATION BY PARTS MAKERS THE SPOKESMEN SAID THE CAR MAKERS HOPE FOR AN EXTRA CONTRIBUTION FROM SOME PARTS MAKERS THAT USE IMPORTED MATERIALSAND THUS BENEFIT FROM THE STRONG YEN THAT LOWERS IMPORT PRICES THEY SAID IF THE YEN STABILIZES AT THE CURRENT LEVEL IT WILL BE VERY DIFFICULT TO GAIN PROFITS WITHOUT FURTHER REDUCTION OF PRODUCTION COSTS THE NISSAN SPOKESMAN SAID NISSAN CONDUCTS PARTSPRICE NEGOTIATIONS ONCE A YEAR PRIOR TO THE START OF EACH FISCAL YEAR NISSAN WOULDN'T DISCLOSE THE SCALE OF THE PRICE CUTS IT HAS REQUESTED THERE IS NO UNIFIED RATE AS THOSE THAT RELY ON IMPORTED MATERIALS SHOULD HAVE MORE ROOM FOR PRICE REDUCTION THAN OTHERS THE SPOKESMAN SAID MAZDA ASKED PARTS MAKERS TO REDUCE PRICES BY 3 PLUS ALPHA URGING MORE THAN A 3 CUT TO REFLECT THE BENEFIT OF LOWER IMPORT PRICES FROM THE YEN'S APPRECIATION A MAZDA SPOKESMAN SAID MAZDA NEGOTIATES PARTS PRICES TWICE EACH YEAR 9310150022 931015 THE BUSINESS OF LAW ATTORNEYS SUE GM TO BLOCK SETTLEMENT IN TRUCK CASE DETROIT IN WHAT COULD BE A STUMBLING BLOCK TO A PROPOSED CLASSACTION SETTLEMENT INVOLVING GENERAL MOTORS CORP PICKUPS THREE TEXAS ATTORNEYS HAVE FILED A NEW LAWSUIT AGAINST GM WE THINK IT'S A POOR SETTLEMENT AND WE WOULD LIKE TO SEE IT STOPPED SAID MARC STANLEY WHO FILED THE SUIT IN FEDERAL DISTRICT COURT IN DALLAS AT ISSUE IS A TENTATIVE AGREEMENT TO SETTLE DOZENS OF CLASSACTION SUITS INVOLVING GM PICKUPS WITH SIDEMOUNTED GAS TANKS CRITICS SAY THE TRUCKS EXPLODE TOO EASILY WHEN HIT FROM THE SIDE UNDER THE TERMS OF THE PROPOSED SETTLEMENT REACHED IN JULY SOME SIX MILLION TRUCK OWNERS WOULD BE GIVEN 1000 COUPONS TOWARD THE PURCHASE OF A NEW GM TRUCK THE SETTLEMENT DOES NOT ATTEMPT TO TAKE THE 197387 TRUCKS OFF THE ROAD MR STANLEY'S FEDERAL LAWSUIT SEEKS TO REPRESENT ALL THOSE WHO HAVE ASKED TO BE EXCLUDED FROM THE SETTLEMENT AS A CLASS HE AND HIS COCOUNSEL SAY THEY WILL ATTEMPT TO FORCE GM TO REPAIR ALL SIX MILLION TRUCKS WHICH COULD COST 3 BILLION US DISTRICT COURT JUDGE WILLIAM H YOHN JR IN PHILADELPHIA IS EXPECTED TO HEAR ARGUMENTS ABOUT THE SETTLEMENT ON OCT 26 GM SAYS IT HAS RECEIVED ROUGHLY 9000 PHONE CALLS FROM TRUCK OWNERS FAVORING THE SETTLEMENT FOR EVERY 1000 CALLS OPPOSED TO IT A SPOKESMAN SAID GM IS STILL VERY CONFIDENT THAT THE JUDGE WILL RULE IN FAVOR OF THE SETTLEMENT 9310150021 931015 BUSINESS BRIEF AMVESTORS FINANCIAL CORP INSURANCE HOLDING COMPANY TO TRY STOCK OFFERING AGAIN AMVESTORS FINANCIAL CORP SAID IT WOULD TRY AGAIN WITH DIFFERENT UNDERWRITERS TO SELL AN OFFERING OF 35 MILLION ADDITIONAL COMMON SHARES IN AUGUST THE INSURANCE HOLDING COMPANY WITHDREW A SIMILAR OFFERING BECAUSE OF INSUFFICIENT ORDERS AND WHAT THE COMPANY TERMED AN UNSATISFACTORY PRICE OF 950 A SHARE SAID RALPH W LASTER JR CHAIRMAN AND CHIEF EXECUTIVE OFFICER MR LASTER SAID THE TOPEKA KAN COMPANY IS CONFIDENT OF COMPLETING THE OFFER THIS TIME EVEN IF AT A SIMILAR PRICE AMVESTERS SHARES FELL 625 CENTS OR 6 TO CLOSE AT 975 IN NATIONAL OVERTHECOUNTER TRADING THE COMPANY HAS ABOUT SEVEN MILLION SHARES OUTSTANDING THE RENEWED OFFERING WILL BE COMANAGED BY FURMAN SELZ INC AND PIPER JAFFRAY INC UNDERWRITERS OF THE ORIGINAL OFFERING WERE SALOMON BROTHERS INC AND KIDDER PEABODY & CO PROCEEDS WILL BE USED TO RETIRE ALL BANK DEBT REPURCHASE CERTAIN OUTSTANDING WARRANTS AND ADD TO THE STATUTORY SURPLUS OF AMERICAN INVESTORS LIFE INSURANCE CO A UNIT 9310150020 931015 SMALL BUSINESS A SPECIAL REPORT AVOIDING THE PITFALLS REGULATION PLAY ALTHOUGH RED TAPE HAS PROLIFERATED LATELY GETTING TANGLED UP IN IT ISN'T INEVITABLE BY BRENT BOWERS BUSINESSES FACE ENOUGH REGULATIONS THESE DAYS TO SCARE OFF ANY WOULDBE ENTREPRENEUR IN JUST THE PAST THREE YEARS ON THE FEDERAL LEVEL ALONE LAWS HAVE BEEN ENACTED STRENGTHENING ENVIRONMENTAL SAFEGUARDS FOR THE WATER AND AIR REQUIRING EMPLOYERS TO GIVE ADVANCE NOTICE OF PLANT CLOSINGS BANNING EMPLOYMENT DISCRIMINATION AGAINST THE DISABLED AND TIGHTENING RESTRICTIONS AGAINST HIRING ILLEGAL IMMIGRANTS AMONG OTHER THINGS WITH MORE MEASURES ON THE WAY NOTABLY PRESIDENT CLINTON'S PLAN TO OVERHAUL THE HEALTHCARE SYSTEM AND WITH STATE AND LOCAL GOVERNMENTS OFTEN OUTDOING WASHINGTON IN REGULATORY ZEAL PEOPLE ABOUT TO START A BUSINESS MIGHT BE FORGIVEN FOR WONDERING WHETHER THEY WILL STRANGLE ON ALL THE RED TAPE BUT NEVER FEAR SMALLBUSINESS SPECIALISTS AND ENTREPRENEURS SAY IT CAN BE DONE YES THEY ACKNOWLEDGE THE PAPERWORK IS GETTING WORSE THE LAWS MORE ONEROUS AND THE RULES MORE COMPLICATED YES THE COST OF COMPLIANCE IS INCREASING DIVERTING PRECIOUS TIME AND MONEY FROM MAKING A PRODUCT OR PROVIDING A SERVICE BUT THEY SAY THE BURDEN MAY NOT BE QUITE SO HEAVY AS MANY PEOPLE FEAR FOR ONE THING THE REAL HEADACHES USUALLY BEGIN ONLY WHEN A BUSINESS PUTS EMPLOYEES ON A PAYROLL ENTREPRENEURS WHO DO ALL THE WORK THEMSELVES ALONE OR WITH PARTNERS OR WHO FARM OUT JOBS TO INDEPENDENT CONTRACTORS CAN AVOID MUCH OF THE PAIN AND EVEN WHEN A BUSINESS STARTS HIRING IT CAN ESCAPE THE IMPACT OF MANY OF THE NEW LAWS WHICH TYPICALLY EXEMPT COMPANIES WITH FEWER THAN A CERTAIN NUMBER OF WORKERS IN ANY CASE BUSINESS SPECIALISTS SAY CAREFUL PREPARATION CAN PREVENT UNPLEASANT SURPRISES IN THE CRUCIAL FIRST MONTHS OF OPERATION WORLDCLASS PROCESS INC A PITTSBURGH PROCESSOR OF FLATROLLED STEEL COILS THAT BEGAN OPERATIONS IN JANUARY HAS DEMONSTRATED THIS IN CIRCUMSTANCES THAT HAD THE POTENTIAL FOR BIG PROBLEMS STEEL OF COURSE IS A SMOKESTACK INDUSTRY HIGHLY REGULATED TO PREVENT THE CONTAMINATION OF AIR AND WATER SO WORLDCLASS HAD ITS REGULATORY PAPERWORK CUT OUT FOR IT AS IT PREPARED FOR PRODUCTION WE MADE A CONSCIOUS EFFORT TO DETERMINE THE PEOPLE WE WOULD BE ACCOUNTABLE TO AT VARIOUS STATE AND FEDERAL AGENCIES SAYS JACK TEITZ THE COMPANY'S CHIEF FINANCIAL OFFICER AND ONE OF FOUR FOUNDING PARTNERS WE LET THEM KNOW WHO WE WERE AND WHAT WE WERE DOING WE GAVE THEM ALL THE INFORMATION THEY ASKED FOR AND THINGS HAVE GONE PRETTY SMOOTHLY IF YOU TRY TO WORK WITH THOSE REGULATORS IN A COOPERATIVE MANNER THEY WILL PROBABLY DO THE SAME TO YOU WORLDCLASS ALSO HIRED A CONSULTANT TO HELP IT COMPLY WITH ENVIRONMENTAL REGULATIONS AS A RESULT IT GOT ALL THE ENVIRONMENTAL PROTECTION AGENCY PERMITS IT NEEDED PASSED INSPECTIONS AND BEGAN FULLSCALE PRODUCTION WITHOUT A HITCH SAYS MATTHEW BOTSFORD CHAIRMAN AND CHIEF EXECUTIVE WORLDCLASS'S REVENUE SHOT UP TO 1 MILLION IN AUGUST FROM 200000 IN JANUARY ITS FIRST MONTH OF FULL ACTIVITY MR BOTSFORD SAYS AND THE COMPANY MOVED INTO THE BLACK IN MAY THE GROWTH ENABLED IT TO ADD 12 EMPLOYEES THIS SUMMER RAISING ITS WORK FORCE TO 49 THAT NUMBER IS SIGNIFICANT ONCE A COMPANY HAS 50 OR MORE PEOPLE ON THE PAYROLL IT IS SUBJECT TO THE FEDERAL FAMILYLEAVE LAW WHICH TOOK EFFECT IN AUGUST THE LAW REQUIRES EMPLOYERS TO GIVE WORKERS AS MUCH AS 12 WEEKS OF UNPAID LEAVE A YEAR FOR FAMILY OR MEDICAL NEEDS FOR SMALL COMPANIES THE PROLONGED ABSENCE OF JUST ONE OR TWO IMPORTANT EMPLOYEES CAN BE ENORMOUSLY DISRUPTIVE MR TEITZ SAYS SO MANY SMALL BUSINESSES ARE TAKING PAINS TO STAY BELOW THE LAW'S THRESHOLD WE'RE GOING TO KEEP THE NUMBER AT 49 FOR AS LONG AS WE CAN MR TEITZ SAYS DO WORLDCLASS'S OWNERS HAVE ANY OTHER REGULATORY WORRIES OF COURSE THE HIRING PROCESS IS A POTENTIAL NIGHTMARE MR TEITZ SAYS BECAUSE OF THE DANGER OF VIOLATING THE AMERICANS WITH DISABILITIES ACT OR THE 1991 CIVIL RIGHTS ACT WHICH EXPANDED CIVILRIGHTS PROTECTIONS FOR MINORITIES SOME SPECIALIST GAVE US 15 QUESTIONS YOU MUST NOT ASK DURING THE HIRING PROCESS THINGS LIKE WHERE HAVE YOU LIVED' ARE YOU MARRIED' HAVE YOU EVER HAD ANY ILLNESSES' HAVE YOU EVER FILED A WORKERS' COMPENSATION CLAIM' HE SAYS ADDING THAT SUCH QUESTIONS USED TO COME NATURALLY IN MANY JOB INTERVIEWS MOREOVER MR TEITZ FRETS ABOUT THE POTENTIAL IMPACT OF HEALTHCARE REFORM WORLDCLASS NOW PAYS ABOUT 3 AN HOUR PER EMPLOYEE FOR HEALTH COVERAGE ON TOP OF BASE PAY OF 10 TO 11 HE SAYS PAYROLL TAXES TO COVER SOCIAL SECURITY MEDICARE AND UNEMPLOYMENT INSURANCE TOTAL 150 AND WORKERS' COMPENSATION ADDS ANOTHER 1 FACTORING IN THE COMPANY'S BONUSES AND PROFITSHARING PLAN HE CALCULATES THE TOTAL HOURLY COST PER WORKER AT ABOUT 20 THAT COULD RISE DEPENDING ON WHAT HEALTHCARE REFORM REQUIRES OF WORLDCLASS THE COMPANY'S OWNERS ALSO WORRY ABOUT WORKERS' COMPENSATION THOUGH IT HASN'T YET CREATED ANY PROBLEMS FOR THEM MR TEITZ SAYS HE HAS HEARD HORROR STORIES OF MINOR FAKED OR DELIBERATELY INDUCED INJURIES DAMAGING A SMALL COMPANY'S PERFORMANCE OTHER REGULATIONS HAVE CAUSED HARDLY A RIPPLE AT WORLDCLASS FOR EXAMPLE BECAUSE ITS PLANT IS ON GROUND LEVEL IT NEEDED NO RAMPS TO MEET THE ACCESS REQUIREMENTS OF THE AMERICANS WITH DISABILITIES ACT THE OWNERS SAY AND SOME LAWS ARE A BOON TO THE COMPANY WORLDCLASS IS TAKING ADVANTAGE OF LOWINTEREST LOANS OFFERED TO BUSINESSES THAT INVEST IN ECONOMICALLY DEPRIVED AREAS THEY SAY AND MORE THAN HALF OF ITS WORKERS GOT FEDERALLY SUBSIDIZED JOB TRAINING THOUGH THE INVESTMENT TAX CREDIT THE OWNERS HAD HOPED TO SEE IN THE FEDERAL DEFICITREDUCTION PACKAGE DIDN'T MATERIALIZE WORLDCLASS'S OWNERS SAY THEY AND OTHER SMALL BUSINESSES IN PENNSYLVANIA ARE PRESSING FOR PASSAGE OF A STATE MEASURE TO PROVIDE THAT BENEFIT IF WORLDCLASS IS PROOF THAT A SPECIALIZED BUSINESS CAN GET OFF TO A STRONG START DESPITE ALL THE RED TAPE OUT THERE THEN MUCH SMALLER VENTURES PROVIDE EVIDENCE THAT IN SOME CASES ENTREPRENEURS NEEDN'T GIVE GOVERNMENT REGULATIONS A SECOND THOUGHT CLAUDIA BROWN PRESIDENT OF SWEET SINSATIONS INC A NEW YORK CITY MARKETER OF DESIGNER CONDOMS SAYS SHE HAS HAD ALMOST NO DEALINGS WITH GOVERNMENT AGENCIES THAT'S MAINLY BECAUSE MS BROWN AND HER PARTNER WHO STARTED SWEET SINSATIONS A YEAR AGO HAVE NO EMPLOYEES INSTEAD THEY HAVE SIGNED UP 10 INDEPENDENT SALES REPRESENTATIVES WHO WORK ON COMMISSION SO THE OWNERS DON'T HAVE TO WORRY ABOUT PAYROLL TAXES THE FAMILYLEAVE LAW OR OTHER EMPLOYMENTRELATED REGULATIONS AND IT'S THEIR SUPPLIERS THAT HAVE TO MEET HEALTH STANDARDS AND OTHER REGULATIONS DEALING WITH THE PRODUCTS THE PARTNERS PAY AN ACCOUNTANT 1200 A YEAR TO DO THEIR TAXES AND HANDLE OTHER PAPERWORK THEY ALSO MUST FILL OUT A SIMPLE TAX FORM FOR ANY SALESPEOPLE WHO MAKE MORE THAN 600 ANNUALLY IN COMMISSIONS SIMILARLY GOVERNMENT BUREAUCRATS HAVE PRETTY MUCH IGNORED TONI GRAYSON WHO OPENED AN EELLEATHER HANDBAG AND ACCESSORIES SHOP IN NEW YORK CITY LAST DECEMBER MS GRAYSON HAS NO EMPLOYEES OR THE COMPLICATIONS THEY BRING THE CUSTOMS SERVICE REQUIRES THE FILING OF ENTRY DOCUMENTS ON HER PRODUCTS IMPORTED FROM SOUTH KOREA BUT SHE NOW HIRES CUSTOMS BROKERS TO DO THAT MS GRAYSON HAD TO GET A SALESTAX LICENSE AND HER BUSINESS IS SUBJECT TO A VARIETY OF CITY ORDINANCES SUCH AS A REQUIREMENT THAT SNOW BE REMOVED FROM THE SIDEWALK BUT SHE PAYS OTHER PEOPLE FOR THOSE TASKS THERE ARE VERY FEW TECHNICAL REGULATIONS SHE SAYS STILL SMALL BUSINESSES TEND TO GROW MICHAEL CANTWELL NATIONAL DIRECTOR FOR MANUFACTURING AT THE ACCOUNTING FIRM GRANT THORNTON IN MINNEAPOLIS SAYS EVEN THOSE THAT ARE JUST STARTING OUT SHOULD BEAR IN MIND A FEW THINGS FIRST GOVERNMENT REGULATIONS REALLY CAN BE A PAIN IN ITS LATEST TWO SURVEYS OF TOP EXECUTIVES AT MIDSIZE MANUFACTURING COMPANIES THOSE WITH REVENUES OF 10 MILLION TO 500 MILLION A YEAR THE FIRM FOUND LIGHTER REGULATION WAS THEIR TOP PRIORITY THEY REALLY BELIEVE THAT JUST DEALING WITH THIS COMPLEX AND EVERCHANGING REGULATORY ENVIRONMENT ROBS THEM OF PRODUCTIVE TIME MR CANTWELL SAYS ENVIRONMENTAL REGULATIONS ARE CONSIDERED THE MOST VEXATIOUS HE SAYS THE CLEAN AIR ACT OF 1990 HAS ALREADY TRIGGERED A HUGE NUMBER OF ENVIRONMENTAL PROTECTION AGENCY RULES AND IS LIKELY TO GENERATE 200 MORE REGULATIONS BY 1995 HE SAYS THE NO 2 AREA OF CONCERN IS THE MAZE OF EMPLOYMENTRELATED REQUIREMENTS MR CANTWELL SAYS AND TRYING TO FIGURE OUT THE APPLICABILITY OF OVERLAPPING STATE AND FEDERAL LAWS CAN BE TAXING THE FEDERAL FAMILYLEAVE LAW SUPERCEDES STATE LAWS ONLY TO THE EXTENT THAT IT IS MORE GENEROUS BUT SAYS MR CANTWELL WHO HAS COMPARED THE FEDERAL AND MINNESOTA LEAVE LAWS IT OFTEN ISN'T CLEAR WHICH IS MORE GENEROUS ON A GIVEN POINT THE PROBLEM IS THERE ARE MAJOR DIFFERENCES REGARDING THE SIZE OF THE EMPLOYER THE ELIGIBILITY OF THE EMPLOYEE THE DEFINITION OF A CHILD THE REASONS FOR THE LEAVE THE TIMING OF THE LEAVE AND SO ON HE SAYS THIS IS A PERFECT EXAMPLE OF REGULATIONS COMING AT YOU FROM DIFFERENT DIRECTIONS IT ISN'T JUST STATE AND NATIONAL LEGISLATION THAT CAN BE A PROBLEM MR CANTWELL NOTES THAT THERE HAS BEEN A SURGE IN LOCAL ORDINANCES TO REDUCE NOISE POLLUTION LIKEWISE NEW ENTREPRENEURS OFTEN BUMP UP AGAINST LOCAL STATUTES RESTRICTING OR PROHIBITING BUSINESS ACTIVITY IN THE HOME SAYS MARSHA FIRESTONE VICE PRESIDENT FOR TRAINING AND COUNSELING AT THE AMERICAN WOMAN'S ECONOMIC DEVELOPMENT CORP A NONPROFIT GROUP IN NEW YORK CITY THAT ADVISES WOMEN ON HOW TO START BUSINESSES MORE REGULATIONS AND REQUIREMENTS ARE BEING CRAFTED HEALTHCARE REFORM IS THE BIG SHOE EVERYBODY IS WAITING TO HEAR DROP MR CANTWELL SAYS SOME BUSINESS OWNERS ALSO WORRY ABOUT A PROPOSED FEDERAL BAN ON THE PERMANENT REPLACEMENT OF STRIKING WORKERS ENTREPRENEURS ALSO SHOULD PAY CLOSE ATTENTION TO TAXLAW CHANGES AFFECTING SMALL BUSINESS SPECIALISTS SAY EILEEN O'CONNOR A SENIOR TAX MANAGER FOR GRANT THORNTON IN NEW YORK ADVISES NEW ENTREPRENEURS TO STUDY CAREFULLY WHAT SORT OF CORPORATION TO FORM ASIDE FROM C CORPORATIONS SUBCHAPTER S CORPORATIONS AND PARTNERSHIPS A FOURTH OPTION IS GAINING IN POPULARITY SHE NOTES LIMITEDLIABILITY COMPANIES A SORT OF HYBRID BETWEEN S CORPORATIONS AND PARTNERSHIPS LLCS HAVE THE ADVANTAGES OF A LIABILITY CEILING AND FAVORABLE TAX TREATMENT MORE THAN 25 STATES ALLOW THEM UP FROM FOUR JUST TWO YEARS AGO SHE SAYS WHILE MANY OTHER STATES ARE CONSIDERING AUTHORIZING THEM SOME OF THE BEST NEWS FOR STARTUPS THIS YEAR SHE SAYS IS THE NEW TAX LAW'S BREAK FOR INVESTORS IN SMALL COMPANIES THOSE WITH LESS THAN 50 MILLION IN ASSETS IF PEOPLE HOLD ONTO STOCK FOR MORE THAN FIVE YEARS ISSUED BY SUCH COMPANIES AFTER AUG 10 THEY CAN EXCLUDE HALF OF THE GAIN FROM THEIR TAXES AN INCENTIVE EXPECTED TO INCREASE THE FLOW OF CAPITAL TO STARTUPS BUT THE TAX LAW CAN ALSO HOLD SOME UNPLEASANT SHOCKS THE 135000 CEILING ON INCOME SUBJECT TO THE MEDICARE TAX HAS BEEN ELIMINATED THE RESULT MS O'CONNOR SAYS SOMEBODY WHO HAS 300000 IN SELFEMPLOYMENT EARNINGS WILL BE ADDING 4785 TO HIS 1994 TAX BILL OTHER ISSUES THAT MS O'CONNOR SAYS FLEDGLING BUSINESSES SHOULD BE AWARE OF A CONTINUING INTERNAL REVENUE SERVICE CRACKDOWN ON COMPANIES THAT THE AGENCY THINKS ARE WRONGLY CATEGORIZING EMPLOYEES AS INDEPENDENT CONTRACTORS TO AVOID WITHHOLDING AND EMPLOYMENT TAXES THE LINGERING POSSIBILITY THAT THE CLINTON ADMINISTRATION WILL PUSH FOR A VALUEADDED TAX A SORT OF NATIONAL SALES TAX TO HELP PAY FOR HEALTHCARE REFORM GROWTH IN THE NUMBER AND VARIETY OF STATE AND LOCAL TAXES MAKING THE SEARCH FOR A LOWTAX STATE A MORE IMPORTANT CONSIDERATION THAN EVER A FINAL PIECE OF ADVICE COMES FROM RON COHEN FOUNDER OF THE CLEVELAND ACCOUNTING FIRM COHEN & CO AVOID RUNINS WITH REGULATORS AT ALL COSTS THEY HAVE THE MENTALITY OF A VIGILANTE GROUP HE SAYS AND THE PENALTIES ARE UNBELIEVABLE MR BOWERS IS A DEPUTY NEWS EDITOR IN THE WALL STREET JOURNAL'S NEW YORK BUREAU 9310150019 931015 SMALL BUSINESS A SPECIAL REPORT AVOIDING THE PITFALLS MISPLACED TRUST EAGER BUT INEXPERIENCED NOVICE BUSINESS OWNERS ARE OFTEN EASY PREY FOR WILY SCAM ARTISTS BY JOHN R EMSHWILLER TWO YEARS AGO KENNETH KAPLAN OF RESTON VA WAS WORKING AS A COMPUTER PROGRAMMER AT TRW INC AND GROWING RESTLESS I WAS GETTING BURNED OUT AND LOOKING FOR A NICE LITTLE BUSINESS OF MY OWN HE RECALLS READING THE NEWSPAPER ONE DAY HE SAW AN ADVERTISEMENT FOR RAIN FOREST NATURAL PRODUCTS INC A FORT LAUDERDALE FLA SELLER OF DISTRIBUTORSHIPS FOR SKINCARE AND HAIRCARE PRODUCTS THE OPPORTUNITY SEEMED PERFECT SO AFTER CHECKING COMPANYSUPPLIED REFERENCES MR KAPLAN PAID ABOUT 20000 FOR 26 DISPLAY RACKS A SUPPLY OF MERCHANDISE AND ASSURANCES THAT RAIN FOREST THROUGH A FIRM THAT SPECIALIZES IN SUCH ADVICE WOULD HELP HIM FIND HIGHPROFIT LOCATIONS FOR THE DISPLAYS ALTHOUGH MR KAPLAN RECEIVED THE RACKS AND MERCHANDISE THE LOCATING FIRM NEVER CAME THROUGH WITH THE PROMISED LEADS NOW HAVING QUIT HIS JOB TO PURSUE THE RAIN FOREST VENTURE FULL TIME HE IS DEEP IN DEBT AND TRYING TO EKE OUT A LIVING AS A COMPUTER CONSULTANT I CAN'T TELL YOU THE STRESS THIS HAS PUT ME THROUGH HE SAYS MANY WOULDBE ENTREPRENEURS DON'T NEED TO BE TOLD FOR MR KAPLAN'S PREDICAMENT IS IN A LOT OF RESPECTS ALL TOO FAMILIAR AFTER GATHERING THEIR COURAGE RESOURCES AND ENERGY TO START A BUSINESS A LARGE NUMBER OF FIRSTTIMERS RUN SMACK INTO SHADY OPERATORS HAPPY TO CASH IN ON THEIR HOPES AND INEXPERIENCE IN JUNE THE FEDERAL TRADE COMMISSION FILED SUIT IN A FORT LAUDERDALE FEDERAL COURT AGAINST RAIN FOREST AND 26 ALLEGEDLY RELATED COMPANIES AND INDIVIDUALS CHARGING THE DEFENDANTS WITH MISREPRESENTING THE EARNINGS POTENTIAL OF THE VENTURES AND THE ABILITY OF LOCATING COMPANIES TO FIND PROFITABLE LOCATIONS AND WITH USING FOR REFERENCES SHILLS WHO ARE EMPLOYED BY THE DEFENDANTS TO GIVE GLOWING RECOMMENDATIONS THE FTC WHICH ESTIMATES THAT THE OPERATIONS NAMED IN THE LAWSUIT HAD TAKEN IN 20 MILLION SINCE NOVEMBER 1990 HAS OBTAINED A PRELIMINARY INJUNCTION AGAINST THE DEFENDANTS AND HAD A TEMPORARY RECEIVER APPOINTED RICHARD ROSENBAUM THE COMPANY'S ATTORNEY IN THE CASE DISMISSES THE FTC'S CHARGES AS FALSE AND SAYS THAT RAIN FOREST HAD MANY HAPPY DISTRIBUTORS UNTIL THE AGENCY HALTED ITS OPERATIONS RAIN FOREST HAS ALSO REFUNDED SEVERAL HUNDRED THOUSAND DOLLARS TO DISSATISFIED DISTRIBUTORS HE SAYS ADDING IF THEY WERE TRYING TO RUN A FRAUDULENT OPERATION THEY WOULDN'T BE GIVING BACK MONEY NOVICE BUSINESS OWNERS HARDLY HAVE A MONOPOLY ON TROUBLES LIKE MR KAPLAN'S BUT THEY DO TEND TO MAKE UP THE BULK OF BUSINESSFRAUD VICTIMS STATE AND FEDERAL LAWENFORCEMENT OFFICIALS SAY BY VIRTUE OF BEING OUT THERE THE FIRST TIME ENTREPRENEURS ARE MORE SUSCEPTIBLE TO DISHONEST PLOYS SAYS BARRY GLADDEN FINANCIALINVESTIGATIONS DIRECTOR FOR THE FLORIDA COMPTROLLER'S OFFICE PART OF THE PROBLEM IS AN EAGERNESS TO BELIEVE THAT OTHERS REALLY WANT TO HELP PEOPLE WHO ARE TRYING TO START A BUSINESS FOR THE FIRST TIME ARE PULLED IN SO MANY DIRECTIONS AND ARE SO ANXIOUS TO GET THE BUSINESS GOING THAT THEY ARE PERHAPS MORE TRUSTING THAN THEY SHOULD BE EXPLAINS SHIRLEY L ROOKER PRESIDENT OF CALL FOR ACTION A PRIVATE WASHINGTONBASED GROUP THAT FIGHTS CONSUMER AND SMALLBUSINESS FRAUD MS ROOKER SAYS HER ORGANIZATION HAS FOUND NUMEROUS INSTANCES IN WHICH SCAM ARTISTS STUDIED PUBLIC RECORDS TO FIND NEW BUSINESS INCORPORATIONS AND THEN SOLD PHONY GOODS AND SERVICES TO THE OWNERS EVEN LENGTHY EXPERIENCE IN THE CORPORATE WORLD DOESN'T GUARANTEE IMMUNITY FROM FRAUD NOTES ROBERT L JAMES WHO HANDLES BUSINESSOPPORTUNITY COMPLAINTS FOR THE FLORIDA DEPARTMENT OF AGRICULTURE AND CONSUMER SERVICES IN FACT HE SAYS REFUGEES FROM FORTUNE 500 COMPANIES ARE USED TO DELEGATING RESPONSIBILITY AND BELIEVING WHAT THEY ARE TOLD DANGEROUS HABITS FOR AN ENTREPRENEUR LINNEA CARLIN HAD SPENT 18 YEARS WORKING FOR AMERICAN TELEPHONE & TELEGRAPH AND VARIOUS BELL OPERATING COMPANIES BEFORE QUITTING IN 1990 TO FOLLOW HER HUSBAND WHO WAS IN THE MILITARY TO AN ASSIGNMENT IN MICHIGAN ONCE SETTLED THERE IN ROCHESTER HILLS SHE DECIDED TO START HER OWN BUSINESS THROUGH A NEWSPAPER AD SHE FOUND PAY PHONES INC A MARIETTA GA COMPANY THAT WAS SELLING PAYTELEPHONE DISTRIBUTORSHIPS TO ENTREPRENEURS ATTRACTED BY THE PROMISE OF FAT PROFITS MRS CARLIN SAYS SHE WAS ALSO IMPRESSED BY THE FACT THAT PAY PHONES WAS WORKING IN PARTNERSHIP WITH HER FORMER EMPLOYER WHICH WAS SUPPLYING THE PHONE HARDWARE INDEED PAY PHONES USED THE AT&T LOGO LIBERALLY IN ITS PROMOTIONS I HAVE A LOT OF RESPECT FOR AT&T MRS CARLIN SAYS I ASSUMED THE TELEPHONE GIANT DID ITS HOMEWORK AS IT HAPPENED PAY PHONES TURNED OUT TO BE A BUST MRS CARLIN AND DOZENS OF OTHER ENTREPRENEURS COMPLAIN THAT THE COMPANY FAILED TO DELIVER EQUIPMENT FOUND UNPROFITABLE LOCATIONS FOR THE PHONES AND VASTLY OVERSTATED THE VENTURE'S PROFIT POTENTIAL IN JANUARY OF LAST YEAR AT&T FILED SUIT AGAINST PAY PHONES IN AN ATLANTA FEDERAL COURT CHARGING DECEPTIVE TRADE PRACTICES AND BREACH OF CONTRACT AMONG OTHER THINGS PAY PHONES HAS DENIED THE ALLEGATIONS IN THE CASE WHICH IS STILL PENDING FEDERAL CRIMINAL AUTHORITIES ARE ALSO INVESTIGATING PAY PHONES AND ITS PRINCIPALS AS A RESULT OF THE COMPLAINTS ACCORDING TO PEOPLE FAMILIAR WITH THAT PROBE AT&T SAYS THAT PART OF THE REASON PAY PHONES WAS ABLE TO FOOL IT WAS ITS USE OF A STRATEGY COMMON TO SUCH SCAMS PAY PHONES OPERATED AS A SUBSIDIARY OF ALE CORP A COMPANY THAT HAD BEEN INCORPORATED IN 1977 BUT WAS PURCHASED IN 1991 BY THE PRINCIPALS OF PAY PHONES THUS A MAY 1991 DUN & BRADSTREET REPORT COULD DESCRIBE ALE AND ITS ONEMONTHOLD SOLE SUBSIDIARY AS A WELLESTABLISHED BUSINESS WITH A CLEAR CREDIT HISTORY AND IN GOOD FINANCIAL CONDITION FOR MRS CARLIN AND THE OTHERS AT LEAST THERE WAS AN UPSIDE TO AT&T'S INVOLVEMENT DEEP POCKETS WHEN THINGS WENT AWRY AT&T HAS PAID ABOUT 10 MILLION IN REFUNDS TO HER AND OTHER UNHAPPY PAY PHONE DISTRIBUTORS YET ANOTHER COMMON TRAP FOR FLEDGLING BUSINESS OWNERS LAWENFORCEMENT OFFICIALS SAY INVOLVES SCAM ARTISTS POSING AS LOAN BROKERS IN THESE CASES ENTREPRENEURS ARE PROMISED ACCESS TO NEEDED CAPITAL IN RETURN FOR UPFRONT FEES THAT CAN RUN INTO TENS OF THOUSANDS OF DOLLARS THE SWINDLERS TAKE THE FEES WITH NO INTENTION OF EVER ARRANGING A LOAN RAY BENNETT AN ARCHITECT IN TAMPA FLA RAN AFOUL OF JUST SUCH A SCHEME IN 1988 WHEN HE WAS LOOKING TO BORROW AT LEAST 16 MILLION IN ORDER TO START A BOTTLEDWATER COMPANY THROUGH A BUSINESS CONTACT MR BENNETT WAS INTRODUCED TO MILTON MENDE WHO WAS POSING AS A WEALTHY AND WELLCONNECTED LOS ANGELESAREA LOAN BROKER IN RETURN FOR PROMISES OF FINANCING MR BENNETT PAID MR MENDE AND HIS ASSOCIATES ABOUT 100000 MR MENDE NEVER PROVIDED THE LOAN LAST YEAR MR MENDE WAS CONVICTED IN A LOS ANGELES FEDERAL COURT OF DEFRAUDING MR BENNETT AND OTHERS OUT OF SEVERAL MILLION DOLLARS MR MENDE WHO HAS A LONG RECORD OF PRIOR FRAUD CONVICTIONS IS CURRENTLY SERVING A 12YEAR SENTENCE IN A FEDERAL PENITENTIARY MR BENNETT WHO IS STILL SEEKING FUNDING FOR HIS VENTURE SAYS HE LEARNED SOME HARD AND EXPENSIVE LESSONS FROM THE EPISODE FOR ONE THING HE WOULD NEVER AGAIN BE SWAYED BY GLOWING FINANCIAL STATEMENTS OR CREDIT REPORTS FOR THEY MAY BE BASED ON FALSIFIED INFORMATION SUPPLIED BY THE SWINDLER AND INADEQUATELY CHECKED BY THE RATING AGENCY SUCH REPORTS SHOWED INACCURATELY THAT MR MENDE HAD HUGE AMOUNTS OF GOLD BULLION IN STORAGE I SHOULD HAVE DEMANDED TO SEE THE GOLD IN PERSON SAYS MR BENNETT THESE ARE THE KINDS OF THINGS YOU LEARN FROM EXPERIENCE A GROUP OF WOULDBE ENTREPRENEURS LEARNED A SIMILAR LESSON ABOUT APPEARANCES WHEN THEY INVESTED IN TRITEX COFFEE BREWERS INC OF BOCA RATON FLA WITH THE HELP OF SLICK BROCHURES AND A STAFF OF FRIENDLY SALESPEOPLE TRITEX PROMOTED OFFICE COFFEE MACHINES AS A WAY TO MAKE ANNUAL PROFITS IN THE RANGE OF 250 ACCORDING TO A NUMBER OF PEOPLE WHO SIGNED UP THE PROBLEM SAY SEVERAL UNHAPPY TRITEX DISTRIBUTORS WAS THAT THE COMPANY DIDN'T LIVE UP TO ITS PROMISES INSTEAD OF DELIVERING PREMIUMGRADE COFFEE TRITEX SUPPLIED A LESSEXPENSIVE BLEND FORMER DISTRIBUTORS SAY MOREOVER THE PROFITABLE OFFICE LOCATIONS THE COMPANY HAD PROMISED WERE IN MANY CASES NEVER FOUND BY THE LOCATING FIRMS TRITEX USED CONTEND LETA AND TOM RETI OF LITTLETON COLO WHO SPENT NEARLY 17000 FOR 17 COFFEE BREWERS IN THEIR CASE THE LOCATING FIRM FOUND ONLY ONE PLACE WILLING TO TAKE A MACHINE SAYS MRS RETI UNFORTUNATELY MRS RETI ADDS MANY OF THE PROMISES MADE BY TRITEX WERE ORAL RATHER THAN WRITTEN WHAT FOOLS WE WERE TO BELIEVE THEM SHE LAMENTS NO LAWSUITS HAVE BEEN FILED AGAINST TRITEX IN CONNECTION WITH THE COMPLAINTS BY THE RETIS OR OTHER UNHAPPY DISTRIBUTORS HOWEVER SEVERAL DISTRIBUTORS SAY THEY REGISTERED THEIR OWN COMPLAINTS ABOUT TRITEX WITH VARIOUS STATE AND FEDERAL LAWENFORCEMENT AGENCIES INCLUDING THE FTC AN FTC OFFICIAL SAYS THAT AS A MATTER OF POLICY THE AGENCY DOESN'T DISCUSS WHETHER IT HAS AN OPEN INVESTIGATION EFFORTS TO LOCATE TRITEX OFFICIALS FOR COMMENT WERE UNSUCCESSFUL WHILE ZEAL IS ESSENTIAL TO THE SUCCESS OF MANY ENTREPRENEURS TOO MUCH OF IT CAN BE AN ENEMY TO THE FIRSTTIMER AND THERE ARE PROBABLY NO MORE ZEALOUS ENTREPRENEURS THAN INDEPENDENT INVENTORS FIRSTTIME INVENTORS HAVE AN INCREDIBLY WARPED IDEA OF THE VALUE OF THEIR IDEAS I NEVER HEARD ONE VALUE HIS IDEA AT LESS THAN ONE BILLION DOLLARS SAYS MAGGIE WEISBERG COOWNER OF M&M ASSOCIATES A FORT JONES CALIF FIRM THAT ADVISES INVENTORS ON MARKETING THEIR IDEAS SUCH EXCESSIVE OPTIMISM SHE SAYS MAKES INVENTORS VERY VULNERABLE OVER THE YEARS HUNDREDS OF INVENTORS HAVE COMPLAINED TO STATE AND FEDERAL REGULATORS ABOUT INVENTIONMARKETING COMPANIES SOME OF WHICH CHARGE THOUSANDS OF DOLLARS TO MARKET AN INVENTION TO INDUSTRY MANY OF THE COMPLAINTS ARGUE THAT THESE FIRMS PAINT A ROSY PICTURE OF AN INVENTION'S MARKET POTENTIAL BUT ONLY IN RARE CASES ACTUALLY FIND BUYERS RAY COMPTON OF OXNARD CALIF HAD WORKED AS A TECHNICIAN AT PROCTER & GAMBLE CO FOR 15 YEARS WHEN HE CAME UP WITH AN IDEA FOR KEEPING TOOTHBRUSHES CLEAN WHICH HE THOUGHT WOULD START HIM ON A NEW CAREER AS AN INVENTOR LOOKING FOR HELP HE CONTACTED INVENTION SUBMISSION CORP AN INVENTIONMARKETING CONCERN IN PITTSBURGH WHOSE RADIO AD HE HAD HEARD ISC TOLD HIM IT HAD A COMPUTER PROGRAM THAT WOULD MATCH HIS IDEA WITH LIKELY COMPANIES OR INVESTORS SAYS MR COMPTON WHO IN 1989 SIGNED UP WITH ISC AND EVENTUALLY PAID THE FIRM 7000 TO REPRESENT HIM TO DATE ISC HAS FAILED TO SELL HIS INVENTION MR COMPTON SAYS THAT ISC DID PUT TOGETHER A MARKET SURVEY AND A LIST OF 50 POSSIBLE BUYERS BUT IN THE END SENT MANUFACTURERS ONLY A BRIEF ONEPAGE DESCRIPTION OF HIS INVENTION ON THE BACK OF THE PAGE WAS A DESCRIPTION OF SOMEONE ELSE'S AND INSERTED A PARAGRAPH ABOUT THE IDEA IN SEVERAL TRADESHOW CATALOGS AS FAR AS MR COMPTON KNOWS ONLY ONE COMPANY RESPONDED WITH A REJECTION I FEEL LIKE I GOT ONLY A COUPLE OF HUNDRED BUCKS' WORTH OF SERVICE FROM ISC SAYS MR COMPTON WHO IS NOW LOOKING FOR A NEW FULLTIME JOB HE ADDS THAT ALTHOUGH HE HAS COMPLAINED TO THE FTC HE DOESN'T HAVE THE RESOURCES TO PURSUE LEGAL ACTION AGAINST THE COMPANY AS PREVIOUSLY REPORTED HOWEVER THE FTC IN APRIL FILED SUIT IN A PITTSBURGH FEDERAL COURT CHARGING ISC WITH MISREPRESENTING THE NATURE QUALITY AND SUCCESS RATE OF ITS SERVICES VIRTUALLY NONE OF THE COMPANY'S CUSTOMERS EARNED MORE FOR THEIR INVENTIONS THAN THEY PAID FOR PROMOTION SERVICES THE AGENCY CHARGED IN THE SUIT WHICH IS STILL PENDING THE FTC IS SEEKING CUSTOMER REPAYMENTS THAT COULD TOTAL MILLIONS OF DOLLARS ISC STRONGLY DISPUTES THE FTC CHARGES AS FOR MR COMPTON AN ISC SPOKESMAN SAYS THAT MR COMPTON DIDN'T COMPLAIN TO THE COMPANY ISC FEELS IT FULFILLED ITS OBLIGATION TO MR COMPTON THE SPOKESMAN SAYS ALTHOUGH IT DIDN'T MANAGE TO FIND A BUYER FOR HIS INVENTION WHILE SUCH EXPERIENCES HAVE SOURED SOME WOULDBE ENTREPRENEURS ENTIRELY ON THE IDEA OF OWNING A BUSINESS OTHERS REMAIN PHILOSOPHICAL MRS RETI FOR EXAMPLE SAYS SHE WAS ABLE TO TAKE SOME OF THE LESSONS FROM HER TRITEX EXPERIENCE AND APPLY THEM TO HER SECOND ATTEMPT AT ENTREPRENEURSHIP A VENDING ROUTE THAT CONSISTS OF PLACING RACKS OF PACKAGED FRUITANDNUT MIXES IN STORES THIS TIME SHE SAYS SHE BOUGHT THE RIGHTS TO AN EXISTING ROUTE FROM A LOCAL COMPANY THAT HAD BEEN IN BUSINESS IN THE DENVER AREA FOR MORE THAN 15 YEARS THIS COMPANY DIDN'T ADVERTISE OR BUG YOU TO SEND THEM 10000 EXPLAINS MRS RETI WHO WAS ON A WAITING LIST FOR A YEAR UNTIL AN EXISTING ROUTE CAME UP FOR SALE MRS RETI SPENT A MONTH ACCOMPANYING THE FORMER ROUTE OPERATOR ON HIS ROUNDS AND WAS ALLOWED TO SEE THE FINANCIAL RECORDS OF THE ROUTE FOR THE PRIOR YEAR GIVEN HER TRITEX EXPERIENCE SHE SAYS I REALLY APPRECIATED THE NEED TO FIND SOMETHING LOCAL THAT I COULD CHECK OUT SO FAR THE ROUTE HAS BEEN MEETING ALL HER FINANCIAL EXPECTATIONS AND HAS ENABLED HER FINALLY TO LEAVE BEHIND HER 15YEAR CAREER AS A DENTAL ASSISTANT I LOVE OWNING MY OWN BUSINESS SHE SAYS MR EMSHWILLER IS A STAFF REPORTER IN THE WALL STREET JOURNAL'S LOS ANGELES BUREAU 9310150018 931015 RAYTHEON TO SETTLE CHARGES ON COST OF PATRIOT MISSILES WASHINGTON RAYTHEON CO AGREED TO PAY 37 MILLION TO SETTLE ALLEGATIONS THAT IT OVERCHARGED THE ARMY FOR PATRIOT MISSILES THE JUSTICE DEPARTMENT SAID THE LEXINGTON MASS COMPANY OVERSTATED THE SKILL LEVEL OF EMPLOYEES NEEDED TO WORK ON THE MISSILES THIS RESULTED IN HIGHER LABOR COSTS AND A GREATER CHARGE TO THE GOVERNMENT ACCORDING TO A STATEMENT BY THE DEPARTMENT PATRIOT MISSILES GAINED PROMINENCE DURING THE PERSIAN GULF WAR WHEN THEY WERE USED TO DESTROY IRAQI SCUD MISSILES ED POWERS RAYTHEON'S PUBLICRELATIONS MANAGER SAID THE COMPANY STRONGLY DISAGREES WITH THE GOVERNMENT'S CHARGES WE BELIEVE OUR DISCLOSURES OF COSTS AND PRICING DATA WERE ACCURATE COMPLETE AND CURRENT IN ALL RESPECTS HE SAID WE REACHED THIS AGREEMENT WITH THE GOVERNMENT IN ORDER TO AVOID THE EXPENSE OF CIVIL LITIGATION IN AUGUST 1992 RAYTHEON AGREED TO PAY 275 MILLION TO THE GOVERNMENT FOLLOWING CHARGES THAT THE COMPANY OVERSTATED THE AMOUNT OF WORK TO BE DONE BY HIGHLY PAID SENIOR ENGINEERS AND UNDERSTATED THE WORK OF LOWERPAID WORKERS ON NAVY MISSILES 9310150017 931015 RECENT SEC FILINGS WASHINGTON THE FOLLOWING ISSUES WERE RECENTLY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION AFC CABLE SYSTEMS INC AN OFFERING OF 1850000 COMMON SHARES VIA SUTRO & CO AND JEFFRIES & CO COLOR TILE INC AN OFFERING OF 250 MILLION SENIOR NOTES DUE 2001 VIA BEAR STEARNS & CO LEHMAN BROTHERS AND CHEMICAL SECURITIES INC GENETIC THERAPY INC AN OFFERING OF 25 MILLION COMMON SHARES VIA SMITH BARNEY SHEARSON INC AND MONTGOMERY SECURITIES RIO HOTEL & CASINO INC AN OFFERING OF 25 MILLION COMMON SHARES VIA RAYMOND JAMES & ASSOCIATES INC AND VOLPE WELTY & CO SUNGLASS HUT INTERNATIONAL INC AN OFFERING OF 22 MILLION COMMON SHARES VIA MONTGOMERY SECURITIES ALEX BROWN & SONS INC MORGAN STANLEY & CO AND SMITH BARNEY SHEARSON INC TATHAM OFFSHORE INC AN OFFERING OF FIVE MILLION COMMON SHARES VIA DONALDSON LUFKIN & JENRETTE SECURITIES CORP AMONG OTHERS 9310150016 931015 FOR INDUSTRIOUS TRAVELERS HOTEL RATES HAVE BEGUN TO MAKE ROOM FOR SAVINGS BY BRIAN COLEMAN STAFF REPORTER OF THE WALL STREET JOURNAL TRAVELERS STAYING MORE THAN A NIGHT OR TWO IN ONE HOTEL AND AVAILING THEMSELVES OF NICETIES SUCH AS ROOM SERVICE MINIBARS AND TELEPHONES CAN QUICKLY TALLY A FORMIDABLE BILL YET INDUSTRY OBSERVERS CONTEND THAT TRAVELERS OFTEN PAY SO MUCH ATTENTION TO THE PRICE OF GETTING SOMEPLACE THAT THEY IGNORE THE COST OF STAYING THERE A TYPICAL TRAVELER SPENDS ON HOTELS ROUGHLY 80 OF THE PRICE OF HIS OR HER AIRLINE TICKET ACCORDING TO TRAVEL AGENT THOMAS COOK GROUP LTD THAT'S SERIOUS MONEY BUT IT DOESN'T HAVE TO BE THAT WAY OPPORTUNITIES TO LIMIT THE DAMAGE HAVE GROWN AS THE HOTEL INDUSTRY APPLIES NEW PRICING TECHNIQUES SOME LONG USED BY AIRLINES JUST AS AN AIRLINE MUST SELL EMPTY SEATS BEFORE A PLANE TAKES OFF OR FOREVER LOSE THOSE SEATS' REVENUE FOR THAT FLIGHT A HOTEL IS OFTEN BETTER OFF FILLING A ROOM AT A BARGAIN PRICE THAN LEAVING IT EMPTY FOR A NIGHT SOPHISTICATED COMPUTER RESERVATION SYSTEMS LOYALTY PROGRAMS AND SEPARATE DEALS FOR BUSINESS AND LEISURE TRAVELERS ALL ALLOW HOTELS TO ADJUST ROOM RATES TO CONSTANTLY SHIFTING DEMAND LIKE THE AIRLINE INDUSTRY PRICES WILL MOVE WITH DEMAND SAYS MICHAEL PRAGER REGIONAL VICE PRESIDENT FOR EUROPE AT RADISSON HOTELS INTERNATIONAL AS A RESULT THE KEY FOR INDIVIDUAL TRAVELERS IS FINDING A WAY TO INCREASE THEIR WORTH TO THE HOTEL THE BEST WAY FOR TRAVELERS TO BEGIN IS BY FINDING OUT IF THEIR EMPLOYER HAS A CORPORATE HOTEL RATE WITH AN INDEPENDENT HOTEL OR CHAIN TYPICAL CORPORATE RATES ARE 20 TO 30 BELOW STANDARD RATES BECAUSE A COMPANY'S DISCOUNT DEPENDS ON THE VOLUME OF ANNUAL BUSINESS IT GENERATES AN EMPLOYER PROBABLY WON'T OBJECT TO APPLYING ITS DISCOUNT PROGRAM TO A PERSONAL TRIP AND NEITHER WILL MOST HOTELS THE HOTEL INDUSTRY ACCEPTS THAT PART OF THE PRICE OF DOING BUSINESS WITH COGIVE THEM DISCOUNTS EVEN FOR PERSONAL STAYS MR PRAGER SAYS IN FACT AMONG RADISSON'S HOTELS THE ONE WITH MORE CUSTOMERS USING CORPORATE DISCOUNTS THAN ANY OTHER IS LOCATED IN ORLANDO FLA HOME OF WALT DISNEY WORLD TRAVELERS CAN ALSO BENEFIT FROM THE BUSINESS WORLD IN ANOTHER WAY HOTELS CATERING TO BUSINESS TRAVELERS TEND TO HAVE FEWER GUESTS ON WEEKEND NIGHTS WHEN THE CORPORATE VOYAGER STAYS HOME TO COMPENSATE HOTELS OFTEN SLASH RATES FOR THOSE NIGHTS THE KEY OPPORTUNITY FOR THE INDIVIDUAL LEISURE TRAVELER IS THE WEEKENDS ARGUES JOANNA RZYMOWSKA THOMAS COOK'S HEAD OF EUROPEAN SALES FOR TRAVEL MANAGEMENT CITYCENTER HOTELS ADVERTISE WEEKEND RATES VERY OFTEN 50 OFF REGULAR RATES THE FIVESTAR INTERCONTINENTAL IN PARIS FOR EXAMPLE OFFERS A WEEKEND RATE OF ABOUT 1250 FRENCH FRANCS 223 THAT MAY NOT BE A BARGAINBASEMENT PRICE BUT IT'S 43 OFF THE PUBLISHED RATE OTHER LUXURY HOTELS IN PARIS HAVE SIMILAR OFFERS SOME EVEN THROW IN DINNER OR A FREE BOTTLE OF CHAMPAGNE THEN THERE ARE HOTELS' LOYALTY PLANS IN WHICH SIMILARITIES WITH AIRLINES BECOME STRIKING JUST AS FREQUENT FLIERS EARN MILES MEMBERS OF A LOYALTY PROGRAM EARN POINTS THAT APPLY TOWARD HOTEL STAYS THE PROGRAMS ALSO TYPICALLY HAVE SPECIAL FEATURES SUCH AS SPEEDY CHECKIN OR LATERTHANUSUAL CHECKOUT TIMES SOME HOTELS EVEN LINK THEIR PROGRAMS WITH THOSE OF AIRLINES ALLOWING TRAVELERS TO APPLY THEIR POINTS TO A PLANE TICKET IN SOME CASES TRAVELERS CAN GET A LESS EXPENSIVE RATE BY BOOKING THROUGH A TRAVEL AGENT MOST MAJOR AGENCIES NEGOTIATE DISCOUNTS WITH HOTEL CHAINS IN RETURN PROMISING TO BOOK HUNDREDS OR THOUSANDS OF GUESTS WITH THE HOTEL THOMAS COOK FOR EXAMPLE GETS 50 REDUCTIONS FROM SOME HOTELS AND INDEPENDENT TRAVEL AGENTS HAVE FORMED CONSORTIUMS THAT COMBINE THEIR POWER TO WIN SIMILAR DISCOUNTS THIS DOESN'T MEAN HOWEVER THAT A TRAVEL AGENT IS ALWAYS THE BEST BET FOR AN INEXPENSIVE ROOM A REAL SAFEGUARD FOR THE INDEPENDENT TRAVELER IS TO PHONE UP THE HOTEL AND SEE IF THEY'RE DOING ANY SPECIAL DEALS ADVISES MS RZYMOWSKA OF THOMAS COOK HOTEL MANAGERS SHE NOTES ARE OFTEN GIVEN THE AUTHORITY TO LOWER ROOM RATES AS THEY SEE FIT AND LARGE HOTELS MIGHT OFFER A VARIETY OF PRICES TO SUIT A RANGE OF LUXURY BUSINESS AND LEISURE CLIENTS ALL OF THIS MEANS CUSTOMERS OFTEN CONFRONT A SEA OF RATES SOMETIMES EVEN AT THE SAME HOTEL SAYS MICHAEL EDWARDS AMERICAN EXPRESS CO'S UK DIRECTOR FOR HOTEL AND RESTAURANT INDUSTRY AFFAIRS IF I HAD TO SAY WHAT IS THE ONE THING THAT WILL HELP YOU GET A BETTER RATE IT WOULD BE TO SHOP AROUND 9310150015 931015 MARKETING & MEDIA GM PLANS TO REEVALUATE' ITS COMMITMENTS TO PBS NEW YORK GENERAL MOTORS CORP SAID IT WILL REEVALUATE ITS SIZABLE FINANCIAL COMMITMENT TO THE PUBLIC BROADCASTING SERVICE FOLLOWING A CRITICAL FRONTLINE DOCUMENTARY ABOUT THE COMPANY BUT A COMPANY SPOKESMAN INSISTED THE REEVALUATION ANNOUNCED IN A STATEMENT TO EMPLOYEES WAS NOT A THREAT WE'RE ALWAYS LOOKING AT ALL THE NETWORKS WE WORK WITH WE NEED TO KNOW IF THEY ARE CHANGING THEIR BROADCAST PARAMETERS SAID BRUCE MACDONALD GM VICE PRESIDENT OF CORPORATE COMMUNICATIONS HE ADDED WE'RE JUST ASKING THE QUESTION THE 90MINUTE PROGRAM WHICH WAS BROADCAST TUESDAY TRACED THE COMPANY'S HISTORY FROM ITS FIRST DAYS TO ITS RECENT DECISION TO SHUT DOWN ITS WILLOW RUN PRODUCTION PLANT IT INCLUDED INTERVIEWS WITH PEOPLE CRITICAL OF THE COMPANY BUT ALSO PRAISED THE NEW SATURN OPERATIONS GM DECLINED TO COOPERATE WITH THE PROGRAM AND THIS WEEK CRITICIZED IT AS BEING DISTORTED A PBS SPOKESMAN DECLINED TO ADDRESS THE SPECIFICS OF THE SHOW BUT SAID PBS STANDS BEHIND THE FRONTLINE PRODUCTION TEAM GM IS ONE OF PBS'S LARGEST UNDERWRITERS AND HAS COMMITMENT OF SEVERAL MILLION DOLLARS TO INDEPENDENT PRODUCER KEN BURNS'S COMING SERIES ON THE HISTORY OF BASEBALL 9310150014 931015 REVIEW & OUTLOOK EDITORIAL ASIDES FLAT EARTH PARTY TURN THE COUNTRY OVER TO THE DEMOCRATS AND ONE OF THE FIRST THINGS UNLEASHED ON THE COUNTRY IS THE OLD MINIMUM WAGE CRUSADE IT'S ALWAYS GOOD TO KNOW WHAT ENERGIZES THE NEW DEMOCRATS LABOR SECRETARY ROBERT REICH CONTENDS THAT HIS PROPOSAL TO RAISE THE MINIMUM WAGE TO 475 FROM 425 AN HOUR WON'T HAVE ANY ADDITIONAL NEGATIVE EMPLOYMENT EFFECTS ALMOST NO ECONOMIST NOT IN THE PAY OF UNIONS BELIEVES THAT BUT NO SOONER HAD MR REICH FLOATED HIS INCREASE THAN HOUSE BUDGET CHAIRMAN MARTIN SABO CAME THUNDERING FORTH THIS WEEK LIBERALS HE WARNED WON'T SETTLE FOR MR REICH'S PIDDLING HALFDOLLAR INCREASE HE THEREUPON PROPOSED JACKING THE MINIMUM WAGE UP TO 650 AN HOUR WHY NOT 25 AN HOUR ALAS SPINNING GOLD FROM FLAX PROBABLY HAS MORE INTELLECTUAL SUPPORT SOME YEARS AGO THE AMERICAN ECONOMIC REVIEW REPORTED THAT 90 OF SURVEYED ECONOMISTS AGREED THE MINIMUM WAGE CAUSES HIGHER UNEMPLOYMENT AMONG LOWSKILLED WORKERS AND REDUCES ONTHEJOB TRAINING OPPORTUNITIES THERE WILL ALWAYS BE POLITICAL ARGUMENTS AFLOAT FOR A HIGHER MINIMUM WAGE BUT ITS NEGATIVE IMPACT ON JOBS IS A SETTLED ISSUE THAT THIS CHIMERA STILL EXISTS IN THE DEMOCRATIC BELIEF SYSTEM SAYS SOMETHING ABOUT THE PARTY'S ABILITY TO CONDUCT A GOVERNMENT AMID A MODERN WORLD ECONOMY 9310150013 931015 TECHNOLOGY APPLE REPORTS A 27 MILLION PROFIT AND RECORD SALES FOR ITS 4TH QUARTER BY JIM CARLTON STAFF REPORTER OF THE WALL STREET JOURNAL APPLE COMPUTER INC BENEFITING FROM COST CONTROLS AND A PRICEDRIVEN SURGE IN SALES REPORTED A 27 MILLION PROFIT FOR ITS FISCAL FOURTH QUARTER SLIGHTLY BETTER THAN SOME ANALYSTS EXPECTED THE CUPERTINO CALIF COMPUTER MAKER'S NET INCOME FOR THE QUARTER ENDED SEPT 24 AMOUNTED TO TWO CENTS A SHARE THAT PALES IN COMPARISON WITH THE PROFIT OF 976 MILLION OR 81 CENTS A SHARE A YEAR EARLIER BUT APPLE'S REVENUE SURGED 21 TO A QUARTERLY RECORD OF 214 BILLION FROM 177 BILLION A YEAR EARLIER AND UNIT SHIPMENTS OF MACINTOSH PERSONAL COMPUTERS GREW 36 TO A NEW QUARTERLY HIGH APPLE SAID THE RESULTS WHICH DEFIED MANY ANALYSTS' EXPECTATIONS OF A LOSS AT APPLE FOLLOW THE COMPANY'S STRATEGY OF SHARPLY REDUCING PRICES ON ITS COMPUTER PRODUCTS WHILE CUTTING COSTS APPLE HAS CUT ITS MACINTOSH PRICES FIVE TIMES SINCE APRIL AND IT LAID OFF 2500 EMPLOYEES DURING THE SUMMER WE HAVE CHALLENGES AHEAD OF US BUT I BELIEVE WE ARE BEGINNING TO TURN THE CORNER MICHAEL SPINDLER PRESIDENT AND CHIEF EXECUTIVE OFFICER SAID IN A STATEMENT HE ADDED GOING FORWARD WE NEED TO MAINTAIN THE MOMENTUM IN OUR UNIT SHIPMENTS AND REVENUES WHILE FURTHER REDUCING OUR OPERATING EXPENSES ANALYSTS POINTED OUT THAT APPLE'S GROSS MARGINS ON SALES CONTINUED TO DETERIORATE UNDER PRICING COMPETITION AND THAT THE COMPANY FACES AN UNCERTAIN TRANSITION TO A NEW LINE OF MACINTOSH COMPUTERS BASED ON POWERPC MICROPROCESSORS BEING DEVELOPED BY APPLE INTERNATIONAL BUSINESS MACHINES CORP AND MOTOROLA INC THE QUARTERLY PROFIT IS NOT CAUSE FOR REJOICING ALTHOUGH IT IS CAUSE FOR CAUTIOUS OPTIMISM SAID TIM BAJARIAN PRESIDENT OF CREATIVE STRATEGIES A HIGHTECH CONSULTING FIRM BASED IN SANTA CLARA CALIF THE RESULTS WERE RELEASED AFTER THE CLOSE OF FINANCIAL MARKETS YESTERDAY APPLE FINISHED AT 2375 DOWN 25 CENTS IN NATIONAL OVERTHECOUNTER TRADING FOR THE FISCAL YEAR APPLE EARNED 866 MILLION OR 73 CENTS A SHARE ON REVENUE OF 798 BILLION DOWN FROM 530 MILLION OR 433 A SHARE ON SALES OF 709 BILLION THE PREVIOUS YEAR THE FISCAL 1993 RESULTS REFLECTED A RESTRUCTURING CHARGE OF 199 MILLION IN THE THIRD QUARTER WHICH CONTRIBUTED TO AN UNEXPECTEDLY LARGE THIRDQUARTER LOSS OF 1883 MILLION OR 163 A SHARE A ONETIME DARLING OF WALL STREET APPLE'S FORTE AS COMPETITORS INTRODUCED PRODUCTS THAT APPROACH THE EASE OF USE OF APPLE'S MACINTOSH BECAUSE THEY WERE SO MUCH EASIER TO USE THAN OTHER PERSONAL COMPUTERS APPLE'S MACINTOSHES HAD COMMANDED A HEFTY PREMIUM PRICE WITH THAT ADVANTAGE DIMINISHED APPLE HAS BEEN FORCED TO SLASH PRICES THIS HAS CRIMPED PROFITS BECAUSE APPLE'S MARGINS HAVE PLUNGED AMID STALLED MARKET SHARE MR SPINDLER SAID MARKET SHARE GREW DURING THE FOURTH QUARTER UNDER MR SPINDLER WHO SUCCEEDED JOHN SCULLEY LAST JUNE APPLE IS WORKING MIGHTILY TO BOOST SALES VOLUME AND MARKET SHARE TO OFFSET THE LOW MARGINS WITH PRICES MORE COMPETITIVE ANALYSTS EXPECT MACINTOSH SALES TO PERFORM WELL DURING THE IMPORTANT CHRISTMAS BUYING SEASON WHAT I AM HOPING AND EXPECTING IS THAT SALES WILL COME BACK IN THE CURRENT QUARTER AND THAT THEY WILL HAVE A SOLIDLY PROFITABLE QUARTER SAID JOHN J GIRTON VICE PRESIDENT OF RESEARCH FOR VAN KASPER & CO